Sunwing/Swoop integration will enhance affordability, says WestJet CEO; critics divided

The WestJet Group issued a statement on Monday (June 19) to address its plans to integrate Sunwing Airlines and ultra-low-cost carrier Swoop into one product offering.

Alexis von Hoensbroech, CEO of the WestJet Group, said he is “confident” that the future integration of both brands will “significantly enhance our ability to provide affordability and choice to our guests.”

"The integration of all jets from Sunwing Airlines, Swoop and WestJet into one fleet will provide us with the scale to enhance our collective operational resilience, while offering more affordable fares and vacation opportunities across our entire network,” von Hoensbroech said.

While the integration of Swoop is anticipated to conclude by the end of October 2023, Sunwing Airlines will not start integrating before 2024 and remains business as usual at this time.

READ MORE: Swoop shutdown will expand low-cost reach to "broader network," says WestJet CEO

The tour operator business, Sunwing Vacations and WestJet Vacations, together will form the “leading tour operator in Canada” and will continue to operate independently under their existing and respective brands, the company said, confirming information PAX first reported last week.

As a result, both Sunwing Vacations and WestJet Vacations will “significantly expand vacation offerings” to more communities across the network as well as offer “affordable vacation packages” from communities in Canada on a year-round basis, which were previously seasonal, the company said.

Through leveraging the ultra-low fare products offered by Swoop and affordable vacation packages offered by Sunwing Vacations, the WestJet Group will begin providing “ultra-affordable fares and increased affordable vacation packages” across Canada through the entirety of its 180 aircraft.

READ MORE: WestJet to integrate Sunwing, reconfigure aircraft; tour op unaffected, says Dawson

"Competition amongst air carriers in Canada has never been healthier and after a challenging three years, aviation is back, with passenger traffic doubling in Canada since March 2022," said von Hoensbroech. "As the strongest airline in Western Canada and the biggest vacation provider across the entire country – the integration of Swoop and eventually Sunwing Airlines into the WestJet Group will enhance affordability and serve to increase choice for Canadians for their air travel and vacation plans."

The brand integrations, which PAX first revealed last Friday (June 16) after obtaining internal documents about the plans, will also lead to the reconfiguration of Sunwing and Swoop aircraft.

WestJet’s 737-800s and MAX 8s, including legacy WestJet, Sunwing and Swoop aircraft, will be reworked to feature 180 seats – up six seats from the current configuration – including 12 Premium seats. The airline’s Max 10s will add 13 seats, totalling 212.

Good news or bad news?

The news hasn’t been without its critics.

The decision to fold Sunwing Airlines into WestJet’s mainline could result in less service and higher fares, particularly in Western Canada and smaller cities across the country, one expert says.

With narrower flight options and higher-priced tickets likely to result from the merger, the latest move is “not good news'' for Canadians looking to head to head south for a vacation, John Gradek, who teaches at McGill University's aviation management program, told the Canadian Press recently.

“There will be a reduction in air services and there will be a corresponding increase in prices,'' Gradek said.

But aviation consultant Rick Erickson said he thinks the competition will ensure a healthy offering, especially for sun destinations, with some fares barely affected.

“I don't think there's going to be a great deal of change, largely because consumers are fairly savvy, the Competition Bureau's out there watching and there are other players in the market,'' Erickson told CP.

“Two big ones, Air Canada and Transat, are going to make sure that no glory profits are going to accrue to WestJet because of this," he said, noting how low-cost carrier Flair Airlines is also becoming “fairly aggressive."

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