The federal government will conduct a public interest assessment of the "WestJet Airlines Ltd" deal to acquire "Sunwing Airlines" and "Sunwing Vacations".

In a statement, Ottawa said the review and evaluation will be conducted through consultations with the industry and other stakeholders, other government departments, as well as citizens.

The Canadian Transportation Agency was given a deadline of December 5 to complete the review and submit it to the Minister of Transport, who will then make a recommendation to the Cabinet regarding the deal, which requires regulatory approval.

WestJet announced in March its plan to acquire Sunwing, a move that would strengthen its vacation tour business.

The financial terms of the agreement were not disclosed, which would make Sunwing shareholders shareholders in the WestJet group,

Under the deal, WestJet said it plans to establish a new charter flight unit based in Toronto that would include Sunwing Vacations and WestJet Vacations as separate brands.

The airline said it would also expand to include Sunwing Airlines, and it will convert the seasonally operated aircraft to year-round planes.