Canadian investment giant Onex Corp. is selling minority stakes in WestJet to two major international carriers—Delta Air Lines and Korean Air—in a move set to reshape the future of the Calgary-based airline. The total value of the transactions is US$550 million.
Under the terms announced Friday, Delta will acquire a 15 per cent stake in WestJet for US$330 million, while Korean Air will purchase a 10 per cent stake for US$220 million. Following the initial transaction, Delta plans to divest a 2.3 per cent stake to its joint venture partner Air France-KLM for US$50 million, solidifying a broader alliance between the carriers.
Onex, which took WestJet private in 2019, hailed the partnership as a turning point. “Delta, Korean and Air France-KLM are among the world’s most prominent and best-managed airlines,” said Tawfiq Popatia, co-head of Onex Partners. “Onex is delighted to welcome them as shareholders in WestJet.”
The deal deepens already-established relationships. Delta and WestJet have collaborated since 2011, and Korean Air has been a codeshare partner since 2012. With this new equity arrangement, WestJet strengthens its ties to the SkyTeam Alliance, which includes Delta, Korean Air, KLM, and Air France—key players in global aviation. Air Canada, by contrast, remains part of the rival Star Alliance.
Delta CEO Ed Bastian said the investment reflects a long-term vision. “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,” he said.
Walter Cho, chairman and CEO of Korean Air and Hanjin Group, also emphasized the deal’s global implications. “This strategic partnership will enhance our global network and create long-term value for customers through greater choice and convenience.”
With WestJet now part-owned by three major SkyTeam members, the airline is poised to expand its international reach and elevate its service offerings—especially at a time when strategic alliances and global connectivity are more important than ever in the airline industry.