Canada’s WestJet Airlines is buying low-cost rival Sunwing Airlines and the Sunwing Vacations tour operator.
WestJet and Sunwing announced the deal in a written statement, noting that Sunwing’s current shareholders will become equity holders of WestJet. Terms weren’t disclosed by the two privately held companies.
The deal will position the carriers “to accelerate growth in value-oriented travel, already the fastest growing segment of the airline market,” WestJet said in the statement.
Sunwing Airlines offers flights for Canadians to sun destinations, including Mexico, the Caribbean, the U.S. and Central America, as well as domestic flights during summer holidays. The company is owned by the family of Chief Executive Officer Stephen Hunter as well as TUI AG, Europe’s largest tour operator.
The takeover marks the latest attempt by a Canadian airline to combine travel and tour operations, with this deal coming as prospects for tourism and travel improve following two years of pandemic lockdowns that hobbled the global airline industry.
Air Canada (AC), the country’s largest airline, sought to buy vacation operator Transat AT (TRZ) in June 2019, but ended up scrapping the takeover because it couldn’t get regulatory approval in Europe.
The combined WestJet and Sunwing will have a fleet of around 190 aircraft, comprised mostly of narrow-body Boeing (BA) 737 jets. A new tour operating business unit will be created under WestJet to include both Sunwing Vacations and WestJet Vacations.
Calgary-based WestJet operates domestic and international routes and has its own ultra low-cost division under the name Swoop.
