WestJet has announced that it plans to shutdown its Sunwing Airlines subsidiary and merge the low-cost carrier into its mainline business.
The move to shutter Sunwing, which mainly flies Canadians to southern sun destinations, will be completed within two years and is part of Calgary-based WestJet’s efforts to streamline its operations.
The announcement concerning Sunwing comes a week after WestJet said it is shutting down and integrating its Swoop subsidiary into its flagship operations.
WestJet announced on June 9 that it would merge Swoop with its mainline business by late October. The shift comes five years after Swoop was launched as a challenger to rival discount carrier Flair Airlines.
The announcement that Sunwing will be shutdown comes a month after the carrier was taken over by WestJet Airlines.
The federal government approved WestJet's takeover of Sunwing Airlines this spring despite the Competition Bureau warning that the deal would result in higher prices and decreased services for Canadians.
WestJet Airlines has moved to streamline its operations after signing a new collective agreement with its pilots’ union that gives them a 24% pay increase over four years.
WestJet has said that, going forward, it plans to focus on serving western Canadian destinations rather than the entire country.
As a privately held company, WestJet’s stock is not traded on a public exchange.