by Jim Byers
Last updated: 11:05 AM ET, Sun January 24, 2021
The head of Sunwing Airlines says the Air Canada takeover of Air Transat will be good for Canada's aviation industry and should be approved by Ottawa.
Speaking with the Globe and Mail, Sunwing CEO Stephen Hunter said that combining Canada's largest and fourth largest airlines would give Canada more global clout and help it compete with foreign airlines that have been increasing their share of traffic in the Canadian market as domestic carriers slash routes during the COVID-19 pandemic.
WestJet last week said Air Canada/Transat deal should be rejected by Transport Canada, or at least modified. WestJet officials said the takeover would decrease competition and lead to higher prices for consumers.
But Hunter takes the opposite view, despite his company's competition with Air Canada and Transat.
"Unless we want Canada completely controlled by foreign carriers, we have to allow this," Hunter said by phone. "Our main fear is, and what we've got to watch out for, is all the European and other international carriers coming in and taking market share away from Canadian airlines. And this is one way to defend them."
Hunter told the Globe and Mail that Sunwing has asked the government for greater access to airport gate slots in Montreal, where Air Canada-Transat would command a majority presence. But the airline has not opposed the deal, even though Air Canada will become the biggest Canadian player in southern markets should it proceed.
"Competition is healthy," Hunter said. "I don't mind whether it's Transat, Air Canada or WestJet. We will compete as we've done in the last 20 years with any of them."
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