Competition Bureau has ‘concerns’ with WestJet’s plan to take over Sunwing

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Canada’s Competition Bureau says WestJet’s proposed takeover of Sunwing is “likely to result in a substantial lessening or prevention of competition.”

The bureau says it delivered a report to the Ministry of Transportation on Wednesday, outlining its “concerns” with the plan the two airlines proposed in March to merge into one.

“Eliminating the rivalry between these integrated airlines and tour operators would likely result in increased prices, less choice and decreases in service for Canadians,” the bureau said. “It would also likely result in a significant reduction in travel by Canadians on a variety of routes where their existing travel networks overlap.”

The bureau singled out 31 routes between Canada and Mexico or the Caribbean that would be impacted. The two airlines are the only two that fly 16 of those routes.

Transport Canada has until Dec. 5 to compile information on the proposed merger and then present their findings to the minister, who will ultimately have final say on whether or not the transaction is allowed to proceed.

More to come.



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