WestJet finalizes takeover of Sunwing Airlines

WestJet has finalized its takeover of Sunwing Airlines, concluding a merger deal that was first proposed more than a year ago.

Calgary-based WestJet says that initially, it plans to operate both airlines independently, meaning Sunwing's fleet of 18 jets and 2,000 workers will continue to offer flights to the Caribbean and some transatlantic routes. But over time it's expected that the two airlines will operate under the one WestJet banner, a move the airline says will transition them "from competitors to collaborators."

The deal will "significantly expand our footprint in Eastern Canada," WestJet CEO Alexis von Hoensbroech said in a news release. "Together, we will strategically enhance our sun and leisure offerings to bring even more affordable and accessible travel opportunities to Canadians."

In addition to flights, Sunwing also operates a packaged vacation tour business, and that part of the business will be fully taken over by  WestJet Vacations but be based out of Toronto and Montreal. 

Maintaining those offices and staffing presences are one of the conditions the government demanded before signing off on the deal and allowing it to happen in March.

The government also insisted that the combined airline would maintain its capacity on routes most affected by the merger, such as locations currently serviced by both airlines.

The deal faced opposition by various regulatory bodies and even Sunwing's own union, before it ultimately prevailed.