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0d 2h Possible purchase from Sunwing? - The Times Hub

Possible purchase from Sunwing?

Possible purchase from Sunwing?

Over the weekend, airline Sunwing announced that it had received an offer to purchase, without specifying who the buyer was.

• Read also: Air transport: $ 375 million to protect jobs

• Read also: Air Canada: Sunwing approves the buyout of Transat

However, several rumors want it to be WestJet that made this purchase offer. Indeed, the two companies have had several discussions in the past.

Coming out of the pandemic, there could indeed be only two major air carriers. Within a week, the European and Canadian authorities must decide on the sale of Transat to Air Canada. Competition in the industry could therefore be at risk and these sales could have several consequences.

Louis Hébert, professor of strategy at HEC Montréal, explains that it is certain that this sale could increase prices. However, the fact that the Canadian aviation market is open may help control this price increase.

Some financial forecasts estimate that all over the world, airline ticket prices will increase by 25% over the next few years.

The industry is therefore concentrating and it is the big players who will come out on top of the crisis. The market therefore finds itself, as it has for several years, with big players who hold monopolies, explains Louis Hébert.

www.journaldemontreal.com

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