FOG BLOG BUSINESS LOG: CALGARY BASED WEST JET GETS GOV'T NOD TO TAKE OVER FLEDGLING SUNWING!

WestJet gets government OK to take over Sunwing, with conditions Deal will see Calgary-based WestJet take over vacation-focused airline WestJet has received official approval from the federal government for its proposed takeover of Sunwing, a move that clears the way for the merger to go ahead.

But the approval is "subject to strict terms and conditions that are in the interest of Canadians," Transport Minister Omar Alghabra said.

Among those requirements are stipulations that the vacation-focused Sunwing extend its getaway package offerings to five new Canadian cities. The combined airline must also maintain its capacity on routes "most affected" by the merger.

The government is also requiring the airline to maintain a head office for the vacations business in Toronto and a regional office in Montreal for at least the next five years, and is demanding that net employment at Sunwing's Toronto head office grows by at least 20 per cent in that time.

"Today's decision was not taken lightly," Alghabra said. "After considering the pros and cons, we have made the decision that will allow Sunwing to continue to provide affordable vacation packages to Canadians, create more good jobs, and protect current jobs as well as Canadians who have already purchased tickets."

In an emailed statement late Friday, Sunwing told CBC News: "We look forward to closing the transaction in the weeks ahead and officially joining the WestJet Group."

Similarly, WestJet said in a statement it was "pleased that the regulatory review of the transaction is now complete."