Delta Air Lines and Korean Air are deepening their long-standing partnership with WestJet by acquiring minority equity stakes in the Canadian airline. This investment comes through Onex Partners, the private equity arm of Onex Group, with affiliated funds and co-investors participating in the transaction. The move aims to enhance the existing partnerships and deliver greater benefits for travelers across North America, Europe, Asia, and beyond.
Under the terms of the agreement, Delta will invest US$330 million for a 15% stake, while Korean Air will contribute US$220 million for a 10% stake in WestJet. This collaboration will strengthen the global networks of both Delta and Korean, providing enhanced services and a more seamless travel experience for customers worldwide.
Delta, already a codeshare partner with WestJet since 2011, has plans to sell 2.3% of its stake to its joint venture partner, Air France-KLM, for US$50 million, subject to regulatory approvals. This strategic partnership builds on years of collaboration, enhancing travel connectivity, especially across the U.S.-Canada border.
“Investing in a world-class partner like WestJet aligns our interests and ensures we remain focused on providing a global network and world-class customer experience,” said Delta CEO Ed Bastian. Korean Air Chairman and CEO Walter Cho echoed the sentiment, highlighting the importance of the partnership for strengthening transpacific connectivity.
WestJet CEO Alexis von Hoensbroech expressed gratitude for the partnership, stating that these investments are a testament to the airline’s strength and resilience, especially after navigating a challenging period for the aviation industry.
Delta and Korean Air have been valuable partners to WestJet, with Delta enhancing U.S.-Canada travel since 2011 and Korean Air contributing to transpacific routes since 2012. The new equity investments are expected to offer further opportunities for expansion and provide more options for customers across a global network.
The deal, which is subject to regulatory approvals, marks a significant milestone in strengthening airline partnerships to deliver enhanced travel experiences for millions of passengers worldwide.
Source: Swifteradio.com
