Canada approves WestJet's purchase of smaller rival Sunwing Airlines -statement

(Reuters) - Canada's government said on Friday it approved airline WestJet Group's acquisition of smaller rival Sunwing Airlines and Sunwing Vacations, subject to strict terms and conditions.

Those terms include requirements to maintain capacity on routes most affected by the merger and improving baggage handling for better passenger experience, Transport Canada, the country's aviation regulator, said in a statement.

WestJet, a low-cost carrier, is owned by private equity firm Onex Corp.

(Reporting by Allison Lampert; writing by Rami Ayyub)