Takeover of Sunwing by WestJet: the Competition Bureau concerned about vacation packages

WestJet's plans to acquire Sunwing airline and Sunwing Vacations could pose a risk to competition, particularly in vacation packages, according to the Competition Bureau.

Takeover of Sunwing by WestJet: the Competition Bureau concerned about vacation packages

WestJet's plans to acquire Sunwing airline and Sunwing Vacations could pose a risk to competition, particularly in vacation packages, according to the Competition Bureau.

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“Eliminating competition between these integrated air carriers and tour operators would likely result in higher prices, loss of choice and diminished service for Canadians,” the Bureau clearly stated in its report released Wednesday.

Conducted for Transport Canada, the review also indicates that 31 lines between Canada and Mexico or the Caribbean could be affected by these effects. None of these lines, however, would depart from a Quebec airport.

WestJet and Sunwing represent nearly 37% of non-stop capacity between Canada and sun destinations.

Air carrier WestJet said it had received the Bureau's report. “We look forward to bringing this transaction to fruition for the benefit of Canadian travellers, communities and employees,” said Angela Avery, WestJet Group Executive Vice President and Chief People, Business and Sustainability Officer, in a statement.

Recall that WestJet announced last March its wish to buy Sunwing and Sunwing Vacations. However, Transport Canada announced last May that an assessment would be carried out with regard to the public interest.

Transport Canada has until December 5 to submit its assessment to its minister, Omar Alghabra, who will then have to provide recommendations.

The closing of the takeover is expected by the end of 2022, if all regulatory authorizations are obtained.

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