WestJet takes over Sunwing, but competition from Air Canada will limit negative impact for consumers

In May 2023, WestJet completed a takeover of Sunwing, a Canadian charter airline and the following month, it announced it was shutting down Swoop, its own discount carrier. The company’s CEO says it’s a good thing for customers, but some think it could push prices higher. Prof. Karl Moore told CBC News that while mergers typically aren’t great for consumers, Canada’s airline industry remains highly competitive. “Reduced competition typically means higher prices, but Air Canada and Air Transat will be pushing WestJet. This will help keep them honest, and competitive to a very large degree.”