What does it mean for Hamilton’s airport as Sunwing and Swoop are folded into WestJet’s operations?
A McMaster University professor expects little to change for travellers out of Hamilton's airport as two of its major passenger carriers fold their operations into WestJet.
The Alberta-based airline announced this month that it will be winding down both Swoop and Sunwing, consolidating their services and offerings under one banner over the next few years.
Few details have been released regarding the closure of either airline. A WestJet spokesperson previously confirmed to The Spectator that all Swoop flights scheduled to fly in and out of John C. Munro Hamilton International Airport until Oct. 28 will go on as planned.
After that, WestJet will broaden" its ultra-low-cost flight options with a wide variety of fares on each trip, according to the spokesperson.
It's unclear what the consolidation will mean for Sunwing's offerings, however a spokesperson for the company described it as a long-term move" for the two airlines.
The timeline for the transition is still being determined," but is expected to take at least a few years, added the spokesperson.
Locally, the winding down of both airline operators will see the passenger offerings at the Hamilton airport shrink from six companies to four. Swoop began flying out of the city in 2018, while Sunwing has been operating out of Steeltown since 2013.
Marvin Ryder, an associate professor focused on marketing, entrepreneurship and business strategy at McMaster University, said he expects the Sunwing consolidations will materialize for the 2024-25 season.
How exactly that will play out remains a mystery.
The Spectator reached out to WestJet for comment on the Sunwing closure but did not receive a response before deadline.
Ryder said that since the Hamilton airport has been a successful takeoff spot for flights to the south, he doesn't expect that to change once WestJet takes over Sunwing.
There is no reason to upset an apple cart," said Ryder. If it's working, why change it?"
In a statement to The Spectator, an airport spokesperson said the airport expects" Sunwing to offer comparable flight and destination options out of the airport next year as it did this past winter.
The spokesperson noted that it has demonstrated there is a proven market here with strong passenger loads on year-round and seasonal routes," adding that it has been in discussions with WestJet about its plans for both airlines and will continue those talks.
Looking at the Swoop consolidation, Ryder questioned how WestJet will continue to offer the budget fares the airline has promised - however, he anticipates that their current offerings will remain in Hamilton.
Neither Sunwing and Swoop are failed airlines," he said. It seems to me there would be no good reason to remake yourself."
John Gradek, a former Air Canada executive and head of McGill University's Global Aviation Leadership Program, told The Star that WestJet's short-term goal appears to be to go after smaller rivals, particularly discount carriers such as Flair and Lynx.
And the easiest way to do that is by cutting fares, noted Gradek.
I'd expect we'll have some pretty intense price competition come this fall and winter among Flair, Lynx and WestJet," said Gradek.
Still, Gradek warned, don't expect that discounting to last. Think of it, he said, like a supermarket offering deep discounts to lure customers away from a local independent shop.
We're there to capture the market to force the other corner grocery store to go out of business. Guess what happens to your prices then?" said Gradek. They go back up to where they were, if not higher."
Fred Lazar, an economist at York University's Schulich School of Business, agreed there will likely be some increased competition for vacation dollars in the wake of the airline consolidations.
However, Lazar said, deep discounting likely isn't in the cards, because demand for travel is strong, and fuel prices are high.
With the integration, WestJet will also be absorbing all of the planes from Swoop and Sunwing, bringing their total fleet number to more than 200 planes, said Ryder.
That will give the airline additional flexibility, which could see the frequency of flights as well as destinations increase - something Hamilton may reap the benefits of, Ryder added.
However, Ryder noted that even if WestJet does happen to pull some of the routes Swoop and Sunwing once offered from Hamilton, another carrier - such as Lynx or Air Transat - could jump in and fill the gaps.
Airlines are a dynamic industry," said Ryder. There may be opportunities here for the other players, or WestJet may reinforce Hamilton - we just don't know at this point."
With files from Josh Rubin
Fallon Hewitt is a reporter at The Spectator. fhewitt@thespec.com