WestJet Airlines has announced that it is shutting down its budget subsidiary Swoop and will integrate its operations into the main carrier by the end of October this year.
The shutdown comes five years after Swoop was launched in response to the arrival of Flair Airlines in 2017.
It also comes after pilots with WestJet and Swoop ratified a new collective agreement that brings them onto a level pay scale and gives all pilots working for WestJet a 24% pay increase.
Calgary-based WestJet said higher wages for flight crews made it unfeasible to continue operating Swoop as a separate budget carrier.
Swoop's 16 narrow-bodied 737 aircraft will be rebranded and integrated into WestJet’s main fleet by the end of October, the company said.
The company said no layoffs are planned from the change, with all Swoop employees slated to move to the main airline. No bookings will be impacted by the switch either, the company said.
Currently, WestJet serves 28% of Canada's domestic air travel market versus 47% served by Air Canada.
WestJet is privately held by Onex Corp. Its stock does not trade on a public exchange.
