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.

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.

The Onex Group will continue to own and control WestJet.

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.

Source: Travelweek