The regulator says eliminating the rivalry is likely to result in a substantial lessening or prevention of competition in the sale of vacation packages
OTTAWA — The federal Competition Bureau has raised significant concerns about WestJet Airlines Ltd.'s proposed acquisition of Sunwing Vacations and Sunwing Airlines, saying the deal will likely result in higher prices and decreased service for Canadians.
"Overall, WestJet and Sunwing account for approximately 37 per cent of non–stop capacity between Canada and sun destinations and 72 per cent of non–stop capacity between Western Canada and sun destinations." But in an emailed statement Wednesday, Sunwing spokeswoman Melanie Anne Filipp said the routes identified as concerns are predominantly in Western Canada and account for a very small portion of Sunwing's operations — just over 10 per cent of all seats — and are primarily seasonal routes.
WestJet said that decision will consider additional factors, including WestJet's promised preservation of Sunwing’s brand, its commitment to maintain Sunwing’s Toronto and Montreal offices, new flying that will be created by retaining Sunwing’s aircraft in Canada year-round and the resulting new employment opportunities.
Robert Kokonis, president of Toronto-based consultancy AirTrav Inc., said he wasn't surprised that the Competition Bureau flagged issues with the proposed Sunwing-WestJet deal.