Delta, Korean Air to acquire 25% of WestJet
Delta Air Lines is buying a 15% stake in Calgary, Canada-based WestJet for $330 million, the company announced Friday.
Another Delta partner, Korean Air, is also acquiring 10% of WestJet for $220 million. Both are purchasing their stakes from Onex Group, a Canadian private equity firm.
The news comes despite a recent dampening in U.S.-Canada travel demand following the Trump administration’s tariffs and threats to make Canada the “51st state.” WestJet suspended nine U.S. routes Thursday because of lower demand.
Delta has made its extensive joint venture partnerships around the world a key part of its international strategy.
It owns 49% of the parent company of Virgin Atlantic, 20% of Aeroméxico’s parent company, 15% in the largest shareholder of Korean Air, 10% of South American partner carrier LATAM, 3% of Air France-KLM and 2% in China Eastern.
The Atlanta-based carrier first entered into a partnership with WestJet in 2011; Korean Air followed in 2012.
Delta said it intends to ultimately sell 2.3% of its new stake to another partner, Air France-KLM.
Acquiring shares of other airlines, Chief External Officer Peter Carter told the AJC in a prior interview, gives Delta “a deeper perspective because we’re in the boardroom.” The company can better understand a partner’s long-term strategy and the risks they’re managing, he said.
“It gives us more skin in the game,” he said.
In a statement about the news Friday, CEO Ed Bastian said the investment “aligns our interests and ensures that we remain focused on providing a world-class global network and customer experience for travelers in the United States and Canada.”
About the Author
As a business reporter, Emma Hurt leads coverage of the Atlanta airport, Delta Air Lines, UPS, Norfolk Southern and other travel and logistics companies. Prior to the Atlanta Journal-Constitution she worked as an editor and Atlanta reporter for Axios, a politics reporter for WABE News and a business reporter for the Arkansas Democrat-Gazette.
