Korean Air, Delta Air Lines to acquire 25% equity stake in WestJet

TORONTO — Onex is selling a 25% stake in WestJet to Korean Air and Delta Air Lines, pending regulatory approvals.

Delta will be investing US$330 million and acquiring a 15% stake, and Korean will invest US$220 million in exchange for a 10% stake. Affiliated funds and co-investors of the Onex Group intend to participate in the sale alongside Onex Partners.

Onex acquired WestJet in 2019.

The companies say the agreement will further align airlines’ interests, expand customer benefits and strengthen connectivity between Canada and North America, Europe and Asia and beyond.

“Delta, Korean and Air France-KLM are among the world’s most prominent and best-managed airlines. Onex is delighted to welcome them as shareholders in WestJet,” said Tawfiq Popatia, Co-Head of Onex Partners.

Upon closing, Delta has the right and intent 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 would remain subject to certain Air France-KLM approvals.

“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. Together, Delta and our airline partners are connecting the world and transforming the future of travel,” said Delta CEO Ed Bastian.

Walter Cho, Chairman and CEO of Korean Air and Hanjin Group, added: “We are pleased to invest in WestJet as part of our continued commitment to enhancing transpacific connectivity. This strategic partnership will enhance our global network and create long-term value for customers through greater choice and convenience.”

The Onex Group will continue to own and control WestJet.

“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.

Korean and Delta have each been codeshare partners with WestJet for years. Korean Air and WestJet have partnered since June 2012, now with flights between Seoul Incheon and Vancouver, Toronto, and Calgary, with onward connections to WestJet’s domestic Canadian and U.S. routes, as well as Korean Air’s extensive Asian network.

Delta and WestJet have been partners since February 2011.

In recent years Delta has made equity investments with Air France-KLM, LATAM, Aeromexico, Virgin Atlantic, China Eastern and Korean Air’s parent company, Hanjin KAL.

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