The CEO of WestJet, Alexis von Hoensbroech, has revealed the merger between Swoop, Sunwing and Westjet Airlines would not lead to higher airfares as integrating the discount carriers would also tamp down costs.
In a recent phone interview, von Hoensbroech said Canada’s second-biggest airline will be able to swap planes more easily and increase the range of destinations for travellers on the hunt for cheap tickets.
Like rivals Porter Airlines and Flair Airlines, WestJet aims to expand its business greatly over the next few years, with 61 Boeing 737s on the order book over the next five years, and an option for 20 more.
The Calgary-based company recently told employees that it would shut down Swoop at the end of October and Sunwing Airlines would be shut down over the next few years, collapsing them into WestJet’s main operation while maintaining Sunwing’s tour package division.
Some experts have alerted that the mergers would bring about lower competition and higher airfares, particularly for sun destinations.
Though competition remains intense and prices are low on major Canadian routes like Toronto to Vancouver, fares to sunny getaways, U.S. cities and European hot spots have risen over the past year.
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