(Montreal) WestJet has postponed its plan to integrate Sunwing Airlines, a decision that represents a setback for the Calgary-based company.
In an email, WestJet announced that it would integrate the low-cost airline’s fleet by the end of April, six months after the integration date initially set for October 26.
Both airlines will continue “business as usual” for their winter flight schedules, spokeswoman Madison Kruger said.
The longer delay comes as the pilot shortage continues to hurt the industry.
The delay is partly due to pilot training, Rick Jones, WestJet’s acting head of route planning, said at a conference in Washington on Monday.
But union unrest can also play a role.
“Putting safety, people and guests first, WestJet Group intends to integrate Sunwing Airlines as closely as possible by its original date of October 2024. WestJet Group expects that unionized operational team members be integrated in a phased approach to meet training requirements and aircraft transition schedules by April 27, 2025,” said Mr. Kruger.
Disputes over the seniority of pilots flying under the same banner remain a point of contention, said John Gradek, who teaches aviation management at McGill University. “There is a union problem there,” he said.
The two groups of pilots are represented by different union groups: the Air Line Pilots Association at WestJet and Unifor at Sunwing.
“If a 20-year captain at Sunwing is brought into WestJet, does he have the equivalent of a 20-year captain at WestJet or will he end up at the bottom of the list? “It’s the same thing that Air Canada experienced when it acquired Canadian Airlines 25 years ago,” recalled Mr. Gradek.
Neither union has yet responded to requests for comment.
WestJet acquired Sunwing’s major airline and vacation divisions last May in a major consolidation of the Canadian aviation market. Sunwing Vacations will remain a separate brand.
Meanwhile, WestJet is facing delays of as yet unspecified duration on dozens of pending Boeing plane deliveries after a panel explosion on a 737 Max plane flown by Alaska Airlines in January resulted in a halt in the expansion of production by the American aircraft manufacturer.
WestJet has signed multibillion-dollar deals with Boeing for at least 65 planes – including 50 737 Max 10s – by 2029. The deal, which the carrier called “revolutionary,” will reduce fuel costs and thus support its growth.
However, the Max 10 has not yet received final certification, and after the panel incident, US regulators said they would halt production expansion at Boeing until a full investigation was completed. completed – a process that could take more than a year.
When asked if compensation was on the table for WestJet, Boeing’s global president, Brendan Nelson, responded in an interview in Montreal that “in this particular case, we are having conversations directly with our customers.”
Some experts believe Boeing may have to offer deep discounts to airlines like WestJet, which make less money because of the older, less efficient planes they are left with in the absence of new deliveries.
“Instead of paying 250 million for a 787-9, we want it to be 150 million. In essence, Boeing will have a much less profitable future due to carriers demanding deep discounts on planes that are already in the order books,” Mr. Gradek explained.
Last month, United Airlines said that under an agreement with Boeing, the carrier will receive “credit notes” for future purchases to offset financial damage caused by the three-week grounding of its 737s. Max 9 and postponed deliveries.