Delta and Korean Air have announced plans to strengthen their partnerships with Canadian carrier WestJet through equity investments totaling 25%. The deal involves purchasing minority stakes from Onex Partners, a Canadian investment firm.
Under the terms of the agreement, Delta will invest $330 million for a 15% stake in WestJet, while Korean Air will acquire a 10% share for $220 million.
Delta also plans to transfer a 2.3% portion of its stake to Air France-KLM, its joint venture partner and a current WestJet partner, in a separate transaction valued at $50 million. This transfer remains subject to Air France-KLM’s internal approvals.
Onex will continue to maintain control of WestJet following the transactions. The deals are subject to regulatory approval.
“This strategic partnership will enhance our global network and create long-term value for customers through greater choice and convenience,” said Walter Cho, chairman and CEO of Korean Air and Hanjin Group, in a news release.
Delta CEO Ed Bastian added, “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.”
Delta and WestJet have maintained a partnership since 2011, with their cooperation enhancing transborder travel between the U.S. and Canada. Korean Air joined forces with WestJet in 2012, bolstering trans-Pacific connectivity through codeshare agreements.
Both Delta and Korean Air have long histories of strategic equity investments in global partners. Delta holds stakes in Air France-KLM, LATAM, Aeromexico, Virgin Atlantic, China Eastern, and Korean Air’s parent company, Hanjin KAL.
