Air carrier WestJet announced on Wednesday that it has reached a definitive agreement to acquire Sunwing Airlines and Sunwing Vacations.
“This is a great moment for WestJet, Sunwing and the travel industry in Canada,” said Alexis von Hoensbroech, president and CEO of WestJet, in a statement. “We are bringing together two highly complementary businesses with strong brands to strengthen our successful leisure business and deliver greater value to our passengers.”
A new tour operator business unit will thus be created following the closing of the transaction, which is scheduled for the end of 2022, after obtaining regulatory approvals. It will be led by Stephen Hunter, President and CEO of Sunwing.
“This combination brings together Canada’s two original low-cost carriers and positions us to accelerate the growth of value-driven travel, which is already the fastest growing segment of the air travel market,” said Mr. von. Hoensbroech.
Sunwing shareholders will also become shareholders of the WestJet group.
Sunwing hopes that the company will no longer need the Large Employer Emergency Credit offered since the start of the COVID-19 pandemic. The funds should also be fully reimbursed to Ottawa upon closing of the transaction.
“We have a very bright future as part of the WestJet group, which is one of the only airlines in the world that has not issued debt or equity during the pandemic or accepted sector-specific government assistance. The combination of their strong balance sheet and growth trajectory with Sunwing’s unparalleled expertise in creating differentiated vacation packages will ensure the success of the new vacation division,” said Mr. Hunter.