WestJet. Photo: SHUTTERSTOCK Delta Air Lines and Korean Air will strengthen their partnership with WestJet by acquiring stakes in the Canadian airline from the private investment firm Onex Partners, which holds full ownership of WestJet.
According to agreements signed over the weekend, Delta and Korean will independently purchase 25% stakes in WestJet.
Delta will invest $330 million to acquire 15% of the Canadian company's shares, and Korean will invest $220 million for 10%.
Upon closing the deal, Delta has the right and intention to transfer 2.3% of WestJet shares to its partner Air France-KLM in exchange for $50 million.
This separate transaction remains subject to certain approvals from Air France-KLM. Onex's group, based in Calgary, Alberta, will retain 75% ownership and control of WestJet.
Both Delta and Korean are long-standing code-share partners with WestJet. The expanded partnerships will support future advantages for passengers, including enhanced and smoother travel experiences for customers worldwide.
"Investing in a world-class partner like WestJet aligns our interests and ensures that we continue to focus on providing a global network and world-class customer experience for travelers in the United States and Canada," said Delta CEO Ed Bastian. "Delta and our airline partners connect the world and are transforming the future of travel."
"We are pleased to invest in WestJet as part of our ongoing commitment to improving trans-Pacific connectivity," said Walter Cho, Chairman and CEO of Korean Air. "This strategic partnership will enhance our global network and create long-term value for customers through more choices."
Delta and WestJet have been partners since February 2011, providing an expanded global network and seamless travel options to customers on both sides of the US-Canada border.
Korean Air and WestJet have been collaborating since June 2012, steadily expanding their trans-Pacific connectivity. Through their code-share agreement, passengers on both sides of the Pacific can access flights between Seoul Incheon and Vancouver, Toronto, and Calgary, with continuing flights to WestJet's domestic routes in Canada and the US, as well as Korean Air's extensive Asian network.