WestJet’s acquisition of Sunwing Airlines cleared for takeoff by Ottawa | Globalnews.ca

WestJet’s acquisition of Sunwing Airlines cleared for takeoff by Ottawa

The acquisition would increase WestJet’s flight footprint to sun destinations and resorts.

The decrease in competition, particularly in the vacation space where the airlines have overlapping routes, will affect the rates Canadians are offered for getaways, the watchdog said in a letter to Alghabra last fall. “After considering the pros and cons, we have made the decision that will allow Sunwing to continue to provide affordable vacation packages to Canadians, create more good jobs, and protect current jobs as well as Canadians who have already purchased tickets,” Alghabra said in a statement.Ottawa’s stipulations for the deal state the combined airlines must maintain capacity on routes affected by the merger.

Labour union Unifor had pushed the federal government to include job protections for Sunwing employees as part of the deal’s approval. WestJet has argued the expanded flying opportunities with Sunwing’s jets will create more jobs.Earlier this year, WestJet announced plans to refocus its operations to primarily service routes out of Western Canada.

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