Delta Air Lines and Korean Air have announced a significant investment in Canada’s WestJet Airlines, acquiring a combined 25% stake for $550 million. Delta will invest $330 million for a 15% share, while Korean Air will contribute $220 million for a 10% stake. Additionally, Delta plans to transfer a 2.3% portion of its stake to its joint venture partner, Air France-KLM, for $50 million, pending necessary approvals.
This strategic move aims to strengthen the existing partnerships among these airlines, enhancing connectivity between Canada, North America, Europe, and Asia. Delta and WestJet have been partners since 2011, and Korean Air has collaborated with WestJet since 2012. The investment is expected to provide customers with a more seamless travel experience across the combined networks.
Despite the new investments, Onex Corporation will retain majority ownership and operational control of WestJet. The deal reflects a broader trend of airlines forming strategic partnerships to expand their global reach and offer enhanced services to passengers. The transaction is subject to regulatory approvals and is anticipated to close later this year.