WestJet's decision to shut down Sunwing Airlines and fold it into its main operations could mean less service and higher fares — particularly in Western Canada and smaller cities across the country, experts say.
Sunwing told employees it was being absorbed by its new owner on Wednesday, less than a week after WestJet announced plans to shutter discount subsidiary Swoop.
WestJet and Sunwing comprise 37 per cent of seat capacity on direct flights to sun destinations, and 72 per cent from Western Canada, according to an October report from the Competition Bureau. Sunwing Vacations has been a price leader in the Canadian market, said Gradek. "The question is, how much does WestJet charge Sunwing Vacations for the use of those airplanes?"
"Two big ones, Air Canada and Transat, are going to make sure that no glory profits are going to accrue to WestJet because of this," Erickson said, adding that six-year-old discount carrier Flair Airlines is also becoming "fairly aggressive."
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