Transport Canada to conduct a public interest assessment on WestJet Airlines' proposed acquisition of Sunwing Vacations and Sunwing Airlines !

We had reported on 2nd of  March - WestJet and Sunwing announced that they have reached a definitive agreement under which the WestJet Group of companies will acquire Sunwing Vacations and Sunwing Airlines.

However, the proposal and official notification to canadian goverment was done a month later, Transport Canada says , 

On April 8, 2022, WestJet Airlines Ltd. and Sunwing Travel Group notified the Minister of Transport that WestJet proposes to acquire Sunwing Vacations and Sunwing Airlines. This notification was in accordance with the mergers and acquisitions provisions of the Canada Transportation Act.

• Proposal - WestJet Group of companies will acquire Toronto-based Rival Sunwing Vacations and Sunwing Airlines.

• The merger, which remains subject to receipt of regulatory approvals, is anticipated to be completed by late 2022.

• WestJet has a all Boeing fleet of 101 aircraft , that has 91 narrowbody B737 -NG/Max models and 06 widebody B787 Dreamliners.

• Sunwing Airlines has a total of 25 Narrowbody B737 aircraft that include 19 NG models and 06 Max models.

WestJet expects the transaction to bring together two distinctly Canadian travel and tourism success stories to deliver new travel options and greater value for travellers , but the proposed new tour operating business unit that will be created under the WestJet Group , to include both 'Sunwing Vacations' and 'WestJet Vacations' will get some contest owing to fears of market monopoly , according to sources.

Under the Framework of regulatory approval, Canadian Government wants to try the process under public interest assessment , as they say ,

The Minister of Transport has determined that the transaction raises public interest considerations related to national transportation. As such, a public interest assessment of the proposed transaction will be conducted with input from the Commissioner of Competition, who will assess impacts on competition.

Canadian government will go thoroughly on this , and the public interest assessment will include consultations with the air industry and other stakeholders, other government departments, other levels of government, as well as the public.

Public opinions are important, apart from the assessment on the economic benefits or challenges resulting from the proposed transaction , Canadians are also being encouraged to have their say on letstalktransportation.ca.

Sunwing company is 51 per cent owned by Hunter and his family, with the other 49 per cent owned by TUI Group.

Under the Canada Transportation Act, Transport Canada has up to 150 days to complete this public interest assessment. However, the Minister has the authority to grant an extension should extra time be necessary.

Considering the size and scope of the proposed transaction, an extra 50 days has been granted to both Transport Canada and the Commissioner of Competition, to ensure sufficient time for thorough analysis and assessment.

Stuck Untill December !

The Department now has up to 200 days (until December 5, 2022) to complete the public interest assessment and provide it to the Minister. The Minister would then provide a recommendation to the Governor in Council (Cabinet) concerning the proposed purchase.

The Minister’s recommendation would incorporate the findings of the Commissioner’s report on competition considerations. There is no legislated timeline for the Minister to make his recommendation or for the Governor in Council to make a final decision.

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