The Canadian airline WestJet announced the closure of its ultra-low-cost subsidiary, Swoop.

The decision follows the ratification of the pilots’ collective agreement, which enables the integration of Swoop into WestJet’s mainline operations. The move is expected to be completed by the end of October 2023.

The collective agreement, negotiated between WestJet and the Air Line Pilots Association (ALPA), includes a wage increase of 24% over four years for pilots.

“The WestJet Group is pleased to have reached an industry-leading agreement in negotiation with ALPA that recognizes the value and instrumental contributions of our current and future pilots,” said Alexis von Hoensbroech, WestJet Group, Chief Executive Officer. “This agreement bolsters our ability to provide certainty and career opportunities across our organization for years to come while ensuring the competitive sustainability of the WestJet Group.”

In the meantime, Swoop will continue operating its flights until the end of its published schedule on October 28, 2023. Swoop employees will be transferred to WestJet as part of the integration efforts.

Swoop was founded in 2018. Operating as a subsidiary of WestJet Airlines, the budget airline specialized in point-to-point flights within Canada and to select destinations in the United States, Mexico, and the Caribbean. Its fleet was composed of 10 Boeing 737-800 and 6 Boeing 737 MAX 8, with 5 more of the latter on order.