The WestJet Group says it has completed its acquisition of Sunwing Vacations and Sunwing Airlines. The transaction, which will see the two brands maintain independent operations, signals a “bright future” for WestJet’s ambitious growth strategy, says the company. Notably, now former Sunwing CEO Stephen Hunter has been appointed CEO of the WestJet Group’s Vacations Business, responsible for all tour operating and vacation package businesses of both brands.
The merger will see the two Canadian travel giants work collaboratively to “combine complementary strategies for a gradual and effective transition,” says WestJet.
It adds that, initially, the airlines will continue independent operations and as the two entities “transition from competitors to collaborators, the combination of the businesses will be planned in a way that positions Sunwing as an instrumental pillar of the WestJet Group and prioritizes the experience of a growing number of guests.”
The transaction, originally announced in March 2022, will also bring greater choice, competitive airfares, and increased direct access to sun destinations to Canadian travellers, says WestJet, and positions Sunwing to continue its growth across Canada and protect jobs.
The federal government approved the takeover of Sunwing by WestJet in March.
In signing off on the deal, Ottawa attached conditions that include extending Sunwing packages to five new cities, maintaining capacity on the most affected routes and keeping both a vacations business head office in Toronto and a regional one in Montreal for at least five years.
“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,” said WestJet Group CEO Alexis von Hoensbroech.
Adding Sunwing – Canada’s largest vacation tour operator – to the group will add 18 Boeing 737s and 2,000 employees to WestJest and significantly expand the airline’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,” said von Hoensbroech
“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,” added Hunter. “I am thrilled to join forces with WestJet and, in doing so, create even more opportunities for our people and deliver greater value for Canadian travellers.”
As previously announced, the WestJet Group’s newly combined tour operator businesses, comprised of WestJet Vacations and Sunwing Vacations, will be headquartered in Toronto and will continue to operate a Montreal office. In the coming years, the Vacations Business expects, among other sources of anticipated growth, to facilitate new flying and new employment opportunities by retaining Sunwing’s aircraft in Canada year-round.