The Competition Bureau has concluded that WestJet's proposed acquisition of Sunwing Vacations and Sunwing Airlines is likely to result in a substantial lessening or prevention of competition in the sale of vacation packages to Canadians.
The Bureau's concerns are outlined in a report delivered to the Minister of Transport by the Commissioner of Competition. The report will inform Transport Canada's public interest review of the proposed transaction as it relates to national transportation.
Eliminating the rivalry between these integrated airlines and tour operators would likely result in increased prices, less choice and decreases in service for Canadians. It would also likely result in a significant reduction in travel by Canadians on a variety of routes where their existing travel networks overlap.
The Bureau's review determined that these effects would apply to 31 routes between Canada and Mexico or the Caribbean. The transaction also represents a merger of the only two integrated airlines and tour operators offering non-stop service on 16 of these routes.
The impacts of the COVID-19 pandemic were considered extensively to identify concerns regarding the potential prevention or lessening of competition that may occur as a result of the proposed merger. The Bureau examined competition between WestJet and Sunwing's pre-pandemic networks as well as their current plans.
Transport Canada has until December 5, 2022 to complete its public interest assessment and provide it to the Minister.
The final decision regarding the proposed transaction will be made by the Governor in Council (Cabinet) based on a recommendation from the Minister.
