WestJet is in a period of simultaneous growth and consolidation. While the Canadian carrier will become a larger carrier through its acquisition of Sunwing Airlines, it will also be streamlining its operations by merging multiple brands under a single name. Indeed, the carrier will dissolve both Swoop and Sunwing to form a larger WestJet.
A two-year process
Announced on June 17th, WestJet will wind down Sunwing Airlines and integrate the low-cost airline into its mainline operations. The decision comes nearly two months after finalizing the merger of the two carriers. According to CBC, this consolidation will take place within two years. In a statement provided to CBC News, WestJet stated:
“While we can confirm the eventual integration of Sunwing Airlines into WestJet, the anticipated timeline to do so has not been determined at this time…Our immediate focus remains on the integration of Swoop’s highly successful business model across WestJet’s operations.”
Leaked memo offers more detail
An internal memo written by Sunwing Airlines president Len Corrado, obtained by The Canadian Press, notes that Sunwing will eventually be moved under the air operator’s certificate (AOC) of WestJet over a multi-year process.
At the same time, the memo failed to mention the fate of Sunwing Vacations – the vacation and tour package business associated with Sunwing Airlines.
“The WestJet Group remains committed to growing sun flying in the East alongside expansion plans in Western Canada, and this strategy will only be strengthened as we ultimately transition to a one jet AOC,” -Len Corrado, President, Sunwing Airlines
Growth and consolidation
Just over a week ago, on June 9th, WestJet announced that it would be shutting down its own budget subsidiary, Swoop, and merging its operations with the WestJet mainline fleet. With the carrier freshly acquiring Sunwing, it can continue the trend of consolidation with the goal of streamlining operations.
This type of consolidation is not just happening in Canada. Indeed, it’s just another instance of a growing trend across the entire aviation industry. Already we’ve seen SilkAir and Cathay Dragon reabsorbed into their parent airlines, Singapore Airlines, and Cathay Pacific, respectively. Later this year, we will see the end of Thai Smile as its aircraft rejoin the Thai Airways fleet.
The eventual dissolution of Sunwing will end nearly 20 years of operations. The airline began in 2005, with its first flight operating from Toronto, Ontario to Santiago de Cuba. The airline actually came three years after the start of Sunwing Vacations in 2002. Interestingly, this vacation and tour company began as a family business. As hinted in its name and its bright, orange branding, the carrier has always had a focus on flying Canadian travelers to leisure destinations. By 2020, the airline had seen impressive growth, offering flights from 33 Canadian cities to over 50 popular sun destinations across the Caribbean, Mexico, Central America, and the United States.
What do you think of WestJet’s decision to eventually end flights operating under the Sunwing brand? Share your thoughts by leaving a comment!
Sources: CBC News
