WestJet to Merge with Sunwing Airlines by October 2024

WestJet has announced plans to merge with Sunwing Airlines by October 2024. The Calgary-based company acquired low-cost airline Sunwing on May 1, 2023. Here are the key details:

• Integration Timeline: WestJet aims to fully integrate Sunwing Airlines into its operations by October 2024, the company said in a Sept. 29 statement posted on its website.
• Seamless Transition: The merger will involve incorporating Sunwing’s 18 Boeing 737s and approximately 2,000 employees into WestJet’s existing structure, with the goal of achieving a smooth transition.
• Market Share: The combined market share of WestJet and Sunwing currently stands at 37% for direct flights to sun destinations and a significant 72% for flights departing from Western Canada, according to a report from the Competition Bureau.
• Concerns: Some industry experts have expressed concerns about potential implications for travelers, including reduced service and higher fares, especially in Western Canada and smaller cities.
• Government Oversight: To gain approval for the Sunwing acquisition, both companies have committed to maintaining capacity on routes most affected by the merger. They have also pledged to retain the Sunwing Vacations head office in Toronto and establish a regional office in Montreal for a minimum of five years.
• Swoop Integration: In addition to the Sunwing merger, WestJet is in the process of integrating its budget subsidiary, Swoop, into its main operations. This integration has been facilitated by a recent collective agreement that equalized pilot pay for both segments.

Termination agreements for WestJet and Sunwing employees

As the two Canadian airlines merge over the next 12 months, it’s possible that some non-unionized workers could be fired or let go.

In Canada, non-unionized Sunwing and Westjet employees are entitled to full severance pay when they lose their jobs due to downsizing, merging, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance for provincially regulated employees
• Severance packages in mass layoffs
• Air Canada Layoffs and Severance Pay

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.