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Delta, Korean Air Buy Into WestJet in Major Cross-Border Deal

By  |  May 12, 2025

WestJet Airlines is welcoming new international investors, as Delta Air Lines and Korean Air announced a joint deal to acquire a combined 25 per cent ownership stake in the Canadian carrier, according to CBC.

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    The agreement, disclosed Friday, will see U.S.-based Delta purchase a 15 per cent share of Calgary-headquartered WestJet for $330 million USD. South Korea’s Korean Air will buy a 10 per cent stake for $220 million USD. Together, the deal amounts to a $550 million USD investment — roughly $766.8 million Canadian.

    As part of the arrangement, Delta intends to divest a portion of its new stake. The airline plans to sell 2.3 per cent of WestJet to its joint venture partner Air France-KLM for $50 million USD, further extending the ownership group within the SkyTeam Airline Alliance. Per CBC, the strategic move aims to deepen cross-border cooperation among alliance members.

    WestJet has maintained long-standing partnerships with both Delta and Korean Air. The airline began collaborating with Delta in 2011 and partnered with Korean Air the following year. All three airlines — along with Air France-KLM — are members of the SkyTeam alliance, which competes with Air Canada’s Star Alliance affiliation.

    The sale comes nearly six years after Canadian investment firm Onex purchased WestJet in 2019. Onex will remain the majority stakeholder, keeping the airline compliant with Canadian foreign ownership regulations. These rules stipulate that Canadian airlines must remain controlled by Canadian entities and voting interests, a requirement that appears to be upheld in this transaction, CBC reported.

    Tawfiq Popatia, co-head of Onex Partners, welcomed the move, describing the incoming investors as “among the world’s most prominent and best-managed airlines.”

    Despite the influx of foreign capital, industry experts are cautious about predicting significant change for passengers. Geoffrey White of the Public Interest Advocacy Centre noted that the implications for everyday fliers remain uncertain. “Whether or not that upside is on the backs of passengers or if it’s part of a reinvigoration to make the airline stronger as a competitor remains to be seen,” White told CBC.

    Source: CBC