The i’s the t’s crossed: WestJetSunwing deal now complete

CALGARY — The WestJet Group has completed its acquisition of Sunwing Airlines and Sunwing Vacations.

Originally announced in March 2022, the transaction successfully combines two of Canada’s biggest airlines. The federal government had given the deal the green light in March 2023, with Minister of Transport Omar Alghabra saying that it would “provide affordable vacation packages to Canadians, create more good jobs, and protect current jobs as well as Canadians who have already purchased tickets.”

Initially, the airlines will continue independent operations, maintaining a sharp focus on providing an exceptional guest experience and ensuring safe operations. As the two entities transition from competitors to collaborators, the combination of these businesses will be planned in a way that positions Sunwing as an instrumental pillar of the WestJet Group, and prioritizes the experience of a growing number of guests, said Alexis von Hoensbroech, CEO of the WestJet Group.

“As we have set out on our new strategic trajectory for the WestJet Group, investing further in leisure and sun flying across Canada is a critical driver for growth. It brings me great pleasure to welcome Sunwing to the group, adding 18 Boeing 737s, 2,000 employees and Canada’s largest vacation tour operator and significantly expanding our footprint in Eastern Canada. Together, we will strategically enhance our sun and leisure offerings to bring even more affordable and accessible travel opportunities to Canadians,” said von Hoensbroech.

Stephen Hunter, formerly the CEO of Sunwing Vacations, has been appointed CEO of the WestJet Group’s Vacations Business, responsible for all tour operating and vacation package businesses of both the Sunwing Vacations and WestJet Vacations brands.

“The combination of our complementary businesses marks an important milestone that will enable us to fast-track our growth plans and provide Canadians with more affordable vacations to more destinations than ever before,” said Stephen Hunter, CEO of the WestJet Group’s Vacations Business. “I am thrilled to join forces with WestJet and, in doing so, create even more opportunities for our people and deliver greater value for Canadian travellers.”

As previously announced, the WestJet Group’s newly combined tour operator businesses, comprised of WestJet Vacations and Sunwing Vacations, will be headquartered in Toronto, Ontario and will continue to operate a Montreal office. In the coming years, the Vacations Business expects to facilitate new flying and new employment opportunities by retaining Sunwing’s aircraft in Canada year-round, among other sources of anticipated growth.

Air Canada ready for take-off with NDC, with first changes in effect June 14

TORONTO — Air Canada is going allin with New Distribution Capabilities (NDC) - and the airline wants to make sure its valued travel advisor partners are onboard.

Fare content already available via Air Canada’s NDC technology includes the carrier’s domestic Basic fares, and starting June 14, 2023, best available seat inventory and discounted ancillary pricing will become available via NDC as well.

Also on June 14, Air Canada will introduce a new NDC coupon incentive, to support travel agency transition to NDC - and away from GDS EDIFACT channels. The coupon incentive will apply to eligible NDC bookings made directly with an Air Canada NDC API connection or via select NDC certified technology partners.

Along with the carrot, there’s also a stick.

A new Distribution Cost Recovery (DCR) fee, pegged at $20 - $30, will be introduced June 14 as well, to address the high expense of legacy models, says the airline. The DCR will apply to all tickets issued globally via GDS EDIFACT channels. The DCR does not apply to bookings made via any of Air Canada’s NDC connection options including NDC-sourced content in a GDS solution, as well as through Air Canada’s other direct booking channels such as aircanada.com, aircanada.com/agents, Air Canada for Business, and the Air Canada mobile app, or group bookings.

Mark Nasr, Air Canada’s SVP Products, Marketing & eCommerce, says the DCR will be integrated into the

People

fare and paid by the customer.

Lisa Pierce, VP Global Sales & ACV, says a big part of Air Canada’s plan is to educate front-line agents on NDC. “We know a lot of people might not even know what NDC is. We know change is difficult. There will be bumps along the way. But there is no perfect time, and we have to start somewhere.”

Whereas airline fares were once fairly standard in the early years of mass market travel, they’re now incredibly complex, with a wide range of fare classes, not to mention an ever-growing list of ancillary fees.

Airlines also have robust loyalty programs - Aeroplan, in Air Canada’s case - with special offers for members that need to be easily booked through travel agents as well.

Celestyal welcomes new BDM in Canada

As part of its ongoing plans for growth in North America, Celestyal has ramped up its sales and marketing team to 12 executives in total, the most in the company’s history.

Recent hires include Stephanie McDonald, who has been named BDM, Canada. Prior to joining Celestyal, she served as a BDM with Royal Caribbean Cruises in Canada and Florida for the past 15 years.

In her new role, McDonald will help grow Celestyal’s market share in North America alongside newly hired Richard Sandoval, BDM, West Coast, who’s based in California.

Both McDonald and Sandoval will be responsible for developing strong relationships with key travel agents, group and tour operators, increasing trade awareness, providing training and marketing support in their respective territories, and representing the company at industry events. They will report to Jon Grutzner, VP Business Development for the Americas.

Airlines have been pushing back on GDS segment fees for years, and NDC has been gaining traction as an alternative booking capability that will give travel agencies access to all the new fare and product content that airlines are selling. The airlines want agents to be able to easily sell all of their content, and argue that NDC is the only way to feasibly do it.

Air Canada says its NDC program will provide a competitive alternative to legacy distribution, giving agents access to Air Canada inventory, fares, ancillary services, ticketing, and digital products. Air Canada’s NDC route will also eliminate select debit memos, according to the team.

Continuous pricing, as well as the addition of Flight Pass, is planned for 2023. Upgraded service and support levels include dedicated business and IT teams, 24/7 monitoring and near real-time system status. Additional servicing automation options and order change notifications are also slated for this year.

There are several ways travel agencies can access Air Canada’s NDC content, each designed to suit different agency business models. Agencies can integrate an Air Canada NDC API into their agency, offering content flexibility and 24/7 monitoring and support. They can work with tech partners to get access to a wide rate of functionality and tech option. They can use Air Canada Connex, the airline’s free webbased tool, for direct (and free) access from their desktop. There’s also a GDSbased solution, so far with Amadeus’ IT solution, Altéa NDC.

Nasr and the team also confirm that NDC content will be available through Softvoyage as well, and when asked about SABRE, confirmed that talks are taking place with other distribution platforms as well.

Part of Air Canada’s NDC plan includes plenty of resources for its travel agency partners. There’s an NDC hub at aircanada.com/ndc with upto-date program information. Agents can take part in webinars and other training sessions, or connect with questions via email.