Delta and Korean Air Acquires 25% of WestJet

13 godzin temu

CALGARY- Delta Air Lines (DL) and Korean Air (KE) will acquire 25% of WestJet (WS) for US$550 million, enhancing connectivity.

The deal strengthens partnerships, benefiting travellers from Vancouver (YVR) and beyond with seamless global routes.

Delta and Korean Air Investments

On May 9, 2025, Delta Air Lines (DL) and Korean Air (KE) announced the acquisition of a combined 25% equity stake in WestJet (WS) for US$550 million from Onex Partners and its co-investors.

Delta (DL) will invest US$330 million for a 15% stake, while Korean Air (KE) will pay US$220 million for a 10% stake.

Delta (DL) plans to sell a 2.3% stake to its joint venture partner Air France-KLM (AF/KL) for US$50 million, pending approvals. The Onex Group retains control of WestJet (WS), ensuring operational continuity.

Expanded Routes

This investment builds on long-standing codeshare agreements—Delta (DL) since 2011 and Korean Air (KE) since 2012—enhancing connectivity between Canada, the U.S., Europe, and Asia.

The deal aligns the airlines’ interests, promising expanded routes and improved customer experiences. Subject to regulatory approvals, the transaction reinforces WestJet’s role as a key North American partner.

Enhanced Customer Benefits

The partnership aims to deliver a more cohesive travel experience for passengers flying from hubs like Calgary (YYC) and Vancouver (YVR).

Delta’s network, covering 290 destinations, and Korean Air’s 43-country reach will integrate with WestJet’s 100+ destinations, offering smoother connections and shared loyalty benefits.

For example, travellers can book a single itinerary from Toronto (YYZ) to Tokyo (NRT) via Vancouver (YVR), leveraging Korean Air’s Asian network and WestJet’s Canadian routes.

WestJet CEO Alexis von Hoensbroech noted the deal as an “endorsement” of the airline’s performance, particularly after navigating challenges like reduced U.S. demand.

The investment supports potential route expansions, such as additional transatlantic flights from Halifax (YHZ) to Amsterdam (AMS), and strengthens WestJet’s domestic network, benefiting passengers with more options and reliability.

Global Network

Delta’s partnership with Air France-KLM and Virgin Atlantic (VS), combined with its investments in LATAM and Aeromexico, creates a robust North American and European network.

Korean Air’s codeshare with WestJet (WS) already connects Seoul (ICN) to Canadian cities with onward U.S. routes via Delta. This deal enhances trans-Pacific connectivity, tapping into Asia’s growing travel market.

The transaction aligns with industry trends, as airlines like Delta (DL) invest in partners to secure market share. WestJet’s fleet, including Boeing 787-9s, supports long-haul routes that complement Delta’s and Korean Air’s operations. The partnership may also counter competitive pressures from Air Canada (AC), which dominates Canada’s international market.

Financial Context

The US$550 million deal reflects confidence in WestJet’s recovery, despite recent suspensions of nine U.S. routes due to trade tensions.

Onex Partners, holding WestJet (WS) since 2019, benefits from partial divestment while retaining control. Delta’s US$330 million investment follows its pattern of minority stakes in global carriers, enhancing its 100-year legacy in Canada. Korean Air’s US$220 million stake supports its trans-Pacific strategy post its Asiana Airlines merger.

Barclays advised WestJet (WS) and Onex, ensuring a structured transaction. The deal’s regulatory approval, expected by Q3 2025, will unlock further integration, potentially including joint loyalty programs or coordinated scheduling.

Stay tuned with us. Further, follow us on social media for the latest updates.

Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News

Delta Air Lines Adds New Routes from Orlando, Austin, JFK and More

The post Delta and Korean Air Acquires 25% of WestJet appeared first on Aviation A2Z.

Idź do oryginalnego materiału