Delta Air Lines and Korean Air will each acquire equity in WestJet, marking a new phase in their partnerships with the Canadian airline. The transaction involves the purchase of a combined 25 percent stake from Onex Partners, the private equity division of Canadian investment firm Onex. This move is expected to strengthen their existing cooperation and enhance travel options across North America, Europe, and Asia.
Delta will invest $330 million to acquire a 15 percent stake in WestJet, while Korean Air will purchase a 10 percent share for $220 million. The total transaction reflects both airlines’ ongoing interest in expanding their global network and improving service across borders. Onex Group’s affiliated funds and co-investors also plan to participate in the sale. After the deal, Onex Group will retain ownership and control of WestJet, which is headquartered in Calgary, Alberta.
Following the completion of the equity transaction, Delta plans to transfer 2.3 percent of its shares to its joint venture partner Air France-KLM. The separate sale would be valued at $50 million and remains subject to approval from Air France-KLM. Both Delta and Air France-KLM already maintain strong ties with WestJet through their existing partnerships.
Stronger global access and improved passenger experience
Delta and Korean Air have been in long-standing codeshare agreements with WestJet. This new equity deal is expected to strengthen those partnerships and allow for broader travel benefits. Travelers may see more coordinated schedules, improved connectivity, and access to a larger network of routes in the future.
“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 for travelers in the United States and Canada,” said Delta CEO Ed Bastian. “Together, Delta and our airline partners are connecting the world and transforming the future of travel.”
Walter Cho, Chairman and CEO of Korean Air and Hanjin Group, echoed a similar view. “We are pleased to invest in WestJet as part of our continued commitment to enhancing transpacific connectivity. This strategic partnership will enhance our global network and create long-term value for customers through greater choice and convenience.”
Alexis von Hoensbroech, CEO of WestJet, welcomed the investment. “These investments, and the enhanced partnerships they bring, are an endorsement of our people and WestJet’s differentiated performance through an extraordinary period for aviation in recent years.”
Longstanding collaboration takes a step forward
Delta and WestJet have maintained a working relationship since February 2011. Their partnership has helped expand route offerings and make travel between the United States and Canada easier for passengers. Delta, now celebrating its 100th anniversary, has had a presence in Canada for over 90 years. It has also formed equity ties with other global carriers including Virgin Atlantic, LATAM, China Eastern, Aeromexico, Air France-KLM, and Hanjin KAL, the parent company of Korean Air.
Korean Air and WestJet have collaborated since June 2012. Their codeshare arrangement has allowed travelers from both sides of the Pacific to connect through major Canadian cities such as Vancouver, Calgary, and Toronto, with access to WestJet’s domestic and U.S. routes, as well as Korean Air’s network in Asia.
Tawfiq Popatia, Co-Head of Onex Partners, welcomed the development. “Delta, Korean and Air France-KLM are among the world’s most prominent and best-managed airlines. Onex is delighted to welcome them as shareholders in WestJet.”
Barclays is advising Onex and WestJet on the financial aspects of the deal. The agreement is pending regulatory approval.
This investment marks a new chapter in the collaboration between Delta, Korean Air, and WestJet. It sets the stage for future growth, improved services, and expanded global access for passengers.
