Delta Air Lines and Korean Air will deepen their respective partnerships with WestJet by acquiring minority equity stakes in the Canadian airline from Onex Partners, a Canadian investment and alternative asset management firm. Affiliated funds and co-investors of the Onex Group are also expected to participate in the sale alongside Onex Partners. These investments build on each airline's existing relationship with WestJet, aiming to deliver further benefits to customers across North America, Europe, Asia, and beyond.
Under the agreements, Delta and Korean Air will acquire independent equity stakes totalling 25%. Delta will invest US$330 million for a 15% stake, while Korean will invest US$220 million for a 10% stake.
Upon completion, Delta has the right and intends to sell and transfer a 2.3% stake in WestJet to its joint venture partner, Air France-KLM — also an existing WestJet partner — in exchange for US$50 million. This separate transaction will remain subject to certain approvals by Air France-KLM. The Onex Group will continue to own and control WestJet, which is based in Calgary, Alberta.
“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 travellers 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.”
“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,” said WestJet CEO Alexis von Hoensbroech.
