Delta Air Lines and Korean Air have agreed to acquire a combined 25% equity stake in Canadian carrier WestJet for $550 million from Onex Partners and affiliated investors, strengthening their strategic partnerships and enhancing global network integration.
Delta will invest $330 million for a 15% stake, while Korean Air will acquire a 10% interest for $220 million. The deal, announced Friday, is aimed at expanding customer benefits and connectivity between Canada and destinations across North America, Europe, and Asia.
Delta also plans to transfer a 2.3% stake to its transatlantic joint venture partner Air France-KLM for $50 million, subject to approvals. Onex Group will retain control of WestJet following the transaction.
“Investing in a world-class partner like WestJet aligns our interests and ensures that we remain focused on providing a world-class global network and customer experience,” said Delta CEO Ed Bastian.
The transaction marks a significant step in aligning the commercial goals of the three airlines, all of which have longstanding codeshare agreements with WestJet. Korean Air Chairman Walter Cho said the deal reflects the airline’s continued commitment to transpacific connectivity and customer convenience.
WestJet CEO Alexis von Hoensbroech described the investment as an endorsement of the airline’s performance and resilience, particularly through the challenges of recent years in aviation.
Barclays acted as financial advisor to WestJet and Onex. The deal is subject to regulatory approvals.
Delta and WestJet have been commercial partners since 2011, and Korean Air joined forces with WestJet in 2012, with both partnerships offering increased access to each airline’s respective route networks and enhanced travel options for customers.
Business News Asia