WestJet Group has completed its acquisition of competing leisure carrier Sunwing Airlines (WG, Toronto Pearson) and associated tour operator Sunwing Vacations in what is punted to position the two Canadian leisure travel specialists for greater growth.
For now, the airlines will continue to operate independently but in future could be integrated into WestJet (WS, Calgary) or its budget subsidiary Swoop (Hamilton, ON), according to media reports. Sunwing would become an instrumental driver for growth in the WestJet Group, the company said in a statement.
Initially announced in March 2022, the merger is a strategic pivot for WestJet to focus more on the leisure market and low-cost travel, WestJet Group Chief Executive Officer Alexis von Hoensbroech has told ch-aviation.
"As we have set out on our new strategic trajectory for the WestJet Group, investing further in leisure and sun flying across Canada is a critical driver for growth," he explained.
He said the merger added eighteen B737s, 2,000 employees, and Canada's largest vacation tour operator to the group, significantly expanding WestJet's footprint in Eastern Canada. "Together, we will strategically enhance our sun and leisure offerings to bring even more affordable and accessible travel opportunities to Canadians," he added.
Sunwing Vacations' former boss, Stephen Hunter, has been appointed CEO of WestJet Group's Vacations Business, responsible for all tour operating and vacation package businesses of both the Sunwing Vacations and WestJet Vacations brands. "The combination of our complementary businesses marks an important milestone that will enable us to fast-track our growth plans and provide Canadians with more affordable vacations to more destinations than ever before," he said.
WestJet Group's newly combined tour operator businesses WestJet Vacations and Sunwing Vacations, will be headquartered in Toronto, Ontario and will continue to operate a Montreal office. In the coming years, the Vacations Business expects to facilitate new flying and new employment opportunities by retaining Sunwing's aircraft in Canada year-round, among other sources of anticipated growth. Sunwing previously relied on aircraft sub-leased from its former minority shareholder TUI Group during winter seasons to provide additional capacity to sun destinations.
According to the ch-aviation fleets module, Sunwing's leased fleet comprises sixteen B737-8s and twenty-four B737-800s, of which 26 aircraft are in service.
As reported, a condition of the April 8 regulatory approval of the merger is that WestJet will have to repay the bulk of Sunwing Airlines' CAD316.9 million Canadian dollar (USD235.8 million) federal loan upon closure of its acquisition of the budget leisure carrier, but no mention was made in the official press release by the airline.
