The deal will also see WestJet, which operates to Gatwick, Edinburgh and Dublin, acquire Sunwing’s holiday division Sunwing Vacations.

Transport Canada said strict conditions had been placed on the arrangement, including a requirement to extend Sunwing’s package holiday offering; maintain a Vacations HQ in Toronto and a regional office in Montreal; maintain capacity on routes most affected by the merger; increase regional connectivity; improve baggage handling; and increase net employment at its Toronto office by 20%.

Other objective include investing in IT to improve Sunwing’s communications, a requirement to supply air-fare data relating to packages to monitor price trends, and ending Sunwing’s seasonal leasing practices "to protect Canadian jobs".

The government body added it was also working on "significant reforms" to its air passenger protection regulations to better protect passengers’ rights and "help prevent the frustrating experiences of passengers last summer and over the holiday season".

Minister of transport Omar Alghabra said the decision had not been taken lightly, adding it would allow Sunwing to continue providing affordable packages, protect existing and create new jobs, and honour those already holding tickets.

"We are pleased that the regulatory review of the transaction is now complete," said Angela Avery, WestJet group executive vice-president and chief people, corporate and sustainability officer.

"We thank the minister of transport and the commissioner of competition, and the staff of Transport Canada, the Competition Bureau and the Canadian Transportation Agency, for their efforts to review the transaction."