Korean Air and Delta Air Lines have announced a joint investment of US$550 million to acquire minority stakes in Canadian carrier WestJet. The move is aimed at strengthening their respective partnerships with WestJet and enhancing international connectivity.
Under the agreement, Delta will invest $330 million for a 15% stake, while Korean Air will invest $220 million for a 10% stake. Both investments are being made through a transaction with the Onex Group, WestJet’s current majority owner.
Delta also plans to sell a 2.3% portion of its stake to joint venture partner Air France-KLM for $50 million, pending approvals.
According to the press release, these equity investments will not alter WestJet’s control structure. The Onex Group will remain the controlling shareholder of the Calgary-based airline.
Korean Air and WestJet have maintained a codeshare partnership since 2012, connecting passengers across North America and Asia via Seoul Incheon. Delta and WestJet have worked together since 2011 to improve U.S.-Canada air travel and are expanding their partnership through this investment.
“This strategic partnership will enhance our global network and create long-term value for customers,” said Korean Air CEO Walter Cho. Delta CEO Ed Bastian echoed the sentiment, noting that the investment ensures a world-class network and experience for travelers.
WestJet CEO Alexis von Hoensbroech welcomed the move, calling it a vote of confidence in the airline’s performance through recent challenges.
The transaction is subject to regulatory approval. Barclays acted as financial advisor to WestJet and Onex.
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