Aéroports de Montréal (ADM), the operator of airports serving the city of Montreal, fears Sunwing’s presence at Montreal-Trudeau Airport will diminish if Westjet acquires the airline.
ADM, which operates Trudeau and Mirabel terminals, has said it opposes the project. The organization sent a letter to the regulator signed by the Vice President of Air Operations and Development, Stéphane Lapierre. In it, the airport operator argues that if this merger materializes, years of efforts to increase the number of connections at Trudeau Airport will be undermined. In addition, he adds, he fears Sunwing will move its operations to Toronto Pearson International Airport, where Westjet has one of its hubs. However, the document does not suggest any solution.
“We are not opposed to Westjet’s acquisition of Sunwing. We are only concerned that this may affect the quality of service at Trudeau Airport,” said Anne Marcotte, ADM’s director of public relations.
In early March of this year, Westjet announced that it would buy one of Canada’s largest tour operators, Sunwing Vacations, as well as airline Sunwing Airlines. However, the corporate integration is still subject to regulatory approvals, but is expected to be completed by the end of 2022.
Following the acquisition agreement, Westjet Group will create a new business division that includes Sunwing Vacation and Westjet Vacations. The said district will be directed by Sunwing’s CEO, Stephen Hunter, and will have its headquarters in Toronto and an office in Laval (Quebec). As for Sunwing shareholders, they will become shareholders in Westjet Group.
On the other hand, the group of companies that make up Westjet will be expanded to include Sunwing Airlines. The latter will operate its aircraft year-round, rather than simply supplementing seasonal demand. According to the announcement, the merger will allow to offer a larger selection of sunny and beach destinations to the latter.
“This is an exciting time for Westjet, Sunwing, and the Canadian travel industry. We are combining two companies with a very complementary offering to deliver even greater value for our customers,” Alexis von Hoensbroech, CEO of Westjet, said at the time.
Among the other companies suspected of the aforementioned merger is Transat, which it considers will “significantly” hurt competition in the Canadian leisure travel sector, according to Transat AT CEO Annick Guerard, as revealed REPORTUR.us (Transat admits it is afraid of a Westjet and Sunwing merger).
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