Canada’s Competition Bureau is warning that WestJet’s proposed acquisition of Sunwing Vacations and Sunwing Airlines is likely to lead to fewer — and costlier — options for travellers.
According to a statement from the bureau issued Wednesday, the acquisition would be “likely to result in a substantial lessening or prevention of competition in the sale of vacation packages to Canadians.”
The elimination of the rivalry between the two companies would likely mean higher prices, fewer choices and less service for Canadians, the bureau warned, and possibly “a significant reduction in travel by Canadians on a variety of routes where their existing travel networks overlap.”
The acquisition would affect 31 routes between Canada and destinations in Mexico and the Caribbean, the bureau said, as the proposed transaction would merge the only two airlines offering non-stop service on 16 of those routes.
Transport Canada now has until Dec. 5 to complete a public interest assessment of the proposed move, and present it to Minister of Transport Omar Alghabra, the bureau noted.
“The final decision regarding the proposed transaction will be made by the Governor in Council (Cabinet) based on a recommendation from the Minister,” the bureau said in a statement.