Delta and Korean Air Invest $550 Million in WestJet Airlines Stake

Published 1 hours agoDAL

Delta and Korean Air Invest $550 Million in WestJet Airlines Stake

Delta Air Lines and Korean Air have announced a strategic partnership with a combined investment of $550 million in Canada's WestJet Airlines. Delta is set to acquire a 15% stake for $330 million, while Korean Air will invest $220 million for a 10% share, giving them a combined ownership of 25%. This move marks a significant collaboration in the airline industry, aiming to bolster connectivity and market presence.

Despite this major investment, WestJet will remain under the ownership and operational control of Onex Corporation, ensuring continuity in the airline's governance. The collaboration is not entirely new, as Delta and Korean Air have worked closely with WestJet since 2011, including through codeshare agreements and joint ventures, according to Reuters.

This development occurs against a backdrop of economic challenges for airlines, particularly due to reduced U.S.-bound travel from Canada. This decline is attributed to tariffs and political tensions affecting airlines like Air Canada. The investment by Delta and Korean Air comes at a strategic time, aiming to solidify their positions in both North American and Asian markets, potentially providing a much-needed boost to the Canadian airline industry.

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Delta and Korean Air Invest $550 Million in WestJet Airlines Stake

Delta and Korean Air Invest $550 Million in WestJet Airlines Stake

Delta Air Lines and Korean Air have announced a strategic partnership with a combined investment of $550 million in Canada's WestJet Airlines. Delta is set to acquire a 15% stake for $330 million, while Korean Air will invest $220 million for a 10% share, giving them a combined ownership of 25%. This move marks a significant collaboration in the airline industry, aiming to bolster connectivity and market presence. Despite this major investment, WestJet will remain under the ownership and operational control of Onex Corporation, ensuring continuity in the airline's governance. The collaboration is not entirely new, as Delta and Korean Air have worked closely with WestJet since 2011, including through codeshare agreements and joint ventures, according to Reuters. This development occurs against a backdrop of economic challenges for airlines, particularly due to reduced U.S.-bound travel from Canada. This decline is attributed to tariffs and political tensions affecting airlines like Air Canada. The investment by Delta and Korean Air comes at a strategic time, aiming to solidify their positions in both North American and Asian markets, potentially providing a much-needed boost to the Canadian airline industry.