Is Skyservice to buy Sunwing?

[Databus]

Been hearing little bits and pieces on this recently, any (little) truth to this?

[J.O.]

Skyservice buy Sunwing? Well I work there and I've heard nothing about making a new acquisition, but then again, how many times are employees the last to know?

Seriously, there are some fundamental flaws in the rumour. Sunwing is a tour operator that also owns an airline, much like Transat Vacations. On the other hand, Skyservice is an airline that provides contracted air services to tour operators that compete with the tour operator part of Sunwing. Skyservice could be compared to the companies that operate the school buses for the school boards. The school boards tell the bus operators which routes to operate, the bus operators get that done. So, in order for the rumour to be true, Skyservice would be buying a company that competes with its primary customers. Sort of like the bus companies opening their own schools. Just how long would you expect Skyservice's current customers to play along with a scheme like that? I think they'd say, "Bye bye!" Given that Skyservice just renewed its agreement with a major customer, buying Sunwing would be corporate suicide, IMHO.

I believe that there will be changes in the leisure marketplace in Canada over the next year. There is too much capacity and the customer base is about to drop as the economy continues to tank. But because to the business relationships Skyservice has with its customers, I'd be shocked if this rumour was one of them.

[CanadaEH]

I could see Transat buying Sunwing.. that way they merge tour companies creating a larger Transat Vacations and they get smaller -800 series aircraft to boot. I think as the years go by, WJ will be doing less flying for Transat. Transat needs to grow and/or maintain its marketshare and it may have to do it on its own metal.

[Guest rattler]

Air Transat & Westjet get another destination:

Attention News Editors:

Baird greenlights new flights to Panama, greater consumer choice

    OTTAWA, Dec. 4 /CNW Telbec/ - Canada's Transport Minister, John Baird,

today announced the designation of Air Transat to operate twice weekly

scheduled flights between Canada and Panama, and WestJet to operate scheduled

flights between Canada and Panama on a weekly basis.

    "Air Transat's and WestJet's respective designations will give Canadians

more choice in international travel," said Minister Baird. "At a time of

global economic uncertainty, I'm pleased to see this kind of growth in

Canada's airline industry."

    Under the provisions of Canada's international air transportation policy,

all Canadian air carriers may apply to the Minister for designation to operate

scheduled international air services. These latest designations were made

possible by the bilateral air transport agreement between Canada and Panama

concluded in June 2008.

    The agreement permits each country to designate any number of airlines

for the operation of scheduled air services to and from Canada. In addition,

airlines from each country can serve any point in the other's territory.

    Transport Canada is online at www.tc.gc.ca. Subscribe to news releases

and speeches at www.tc.gc.ca/e-news and keep up to date on the latest from

Transport Canada.