Plans by WestJet (WS, Calgary) to buy Sunwing Airlines (WG, Toronto Pearson) have ruffled feathers with Aéroports de Montréal (ADM), the operator of Montréal Trudeau, writing to Transport Canada saying the purchase could lead to Sunwing shifting its services to Toronto Pearson. Sunwing currently flies to 10 destinations from the Quebec gateway, including Québec and Toronto Pearson in addition to eight Caribbean destinations.
The announcement in early March that Westjet would acquire Sunwing Airlines and its holiday business sparked an anti-trust inquiry by Canada's Competition Bureau and a public interest inquiry by Transport Canada. Both are ongoing. According to The Globe and Mail newspaper, Stéphane Lapierre, ADM's vice president of operations, has made a written submission to Transport Canada.
"We are concerned that the acquisition of Sunwing by WestJet Airlines Ltd. could lead to a shift of Sunwing’s operations to Toronto," the submission said. "This would be very harmful for ADM and for Montreal-Trudeau and would notably have the consequences of reducing the attractiveness of Montreal in terms of service."
According to the report, ADM argues Sunwing could increasingly focus on flights from its Toronto base if the acquisition is approved. Sunwing presently flies to four Canadian and 15 international destinations from Toronto Pearson. WestJet also has a smaller presence at Montreal compared to Toronto and Vancouver International. In June, WestJet said it planned to focus on Canada's west in the future.
Lapierre's submission did not outright oppose the Sunwing acquisition; it merely expressed concern the purchase could decrease Montreal Trudeau's market share, reduce direct routes, and lessen choices for passengers. A decision by the Canadian government on the deal is expected later this year.
