Canadian carrier WestJet has won approval to take over holiday airline rival Sunwing Airlines.
The proposal, first unveiled a year ago, will see Calgary-based WestJet acquire Toronto’s Sunwing as well as its tour operating arm Sunwing Vacations.
The Canadian government gave the green light to the deal on Friday following a competition probe.
Transport Canada insisted approval was granted with “strict terms and conditions” including expansion to offer holiday packages from five new Canadian cities and maintaining capacity on routes most affected by the merger.
It said: “In the absence of this acquisition, Canada’s air transport sector could have faced greater instability, including job losses, a significant reduction of affordable vacation offerings, negative impacts on passengers, and the government not being repaid sizeable loans.”
Sunwing is operating from 26 airports in Canada this winter to destinations in Florida and the Caribbean and employs 2,200 staff. WestJet serves more than 110 destinations including the UK with a fleet of 180 aircraft. Financial terms of the takeover have not been disclosed.
The transport department said: “The decision to approve this acquisition was not taken lightly, especially considering the delays and bottlenecks experienced by travellers last summer, as well as the customer service and communications challenges by Sunwing during the recent holiday season.
“In determining the proposed purchase is in the public interest, the government considered a broad range of factors, such as levels of service, social and economic implications, the financial health of the air transportation sector, and competition.
“Given the current air sector landscape, it was important to ensure that the final agreement offered the best possible outcome for Canadians.
“The acquisition will help maintain the stability of the sector as Sunwing will continue to provide more affordable vacation packages to Canadians, while being financially supported by WestJet.”
Transport minister Omar Alghabra added: “Today’s decision was not taken lightly, especially in light of everything that happened over the holidays for those who flew with Sunwing.
“After considering the pros and cons, we have made the decision that will allow Sunwing to continue to provide affordable vacation packages to Canadians, create more good jobs, and protect current jobs as well as Canadians who have already purchased tickets.
“The agreement will also be accompanied by strict terms and conditions to ensure the public interest, including with regard to competition, connectivity and baggage handling.”
WestJet chief people, corporate and sustainability officer Angela Avery said: “We are pleased that the regulatory review of the transaction is now complete.”