Delta and Korean to acquire independent equity stakes totaling 25% in WestJet for US$550 million from Onex Partners and its affiliated funds and co-investors.

• Agreement will further align airlines' interests, expand customer benefits and strengthen connectivity between Canada and North America, Europe and Asia and beyond

Delta Air Lines and Korean Air will strengthen their respective partnerships with WestJet through the purchase of minority equity stakes in the Canadian airline from Onex Partners, the upper middle market private equity platform of Onex, a Canadian investor and alternative asset manager.

Affiliated funds and co-investors of the Onex Group intend to participate in the sale alongside Onex Partners. These investments build on each airline's existing relationship with WestJet to provide further benefits to customers in North America, Europe, Asia and beyond.

Under the agreements announced today, Delta and Korean will acquire independent equity stakes totaling 25% in WestJet. 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.

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 Calgary, Alberta-based WestJet.

Delta and Korean have each been codeshare partners with WestJet for years. The broader partnerships will support future benefits for travelers, including an elevated, more seamless travel experience for customers worldwide.

"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 travelers in the United States and Canada," said Delta CEO Ed Bastian. "Together, Delta and our airline partners are connecting the world and transforming the future of travel."

"We are pleased to invest in WestJet as part of our continued commitment to enhancing transpacific connectivity," said Walter Cho, Chairman and CEO of Korean Air and Hanjin Group. "This strategic partnership will enhance our global network and create long-term value for customers through greater choice and convenience."

"Delta, Korean and Air France-KLM are among the world's most prominent and best-managed airlines. Onex is delighted to welcome them as shareholders in WestJet," said Tawfiq Popatia, Co-Head of Onex Partners.

"These investments, and the enhanced partnerships they bring, are an endorsement of our people and WestJet's differentiated performance through an extraordinary period for aviation in recent years," said WestJet CEO Alexis von Hoensbroech.

Delta and WestJet have been partners since February 2011, providing an expanded global network and seamless travel options for customers on both sides of the U.S.-Canada border. Delta, which is celebrating its 100th anniversary, has proudly been serving the people of Canada for more than 90 years. In recent years, Delta has made equity investments with several international partners, including Air France-KLM, LATAM, Aeromexico, Virgin Atlantic, China Eastern and Korean Air's parent company, Hanjin KAL.

Korean Air and WestJet have partnered since June 2012, steadily expanding their transpacific connectivity. Through their codeshare agreement, travelers on both sides of the Pacific can access 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.

Barclays is acting as financial advisor to WestJet and Onex on the transaction. The agreement is subject to certain regulatory approvals.

✈️ Why Would a Private Airline Sell 25% to a Foreign Airline?

A Strategic Analysis — Beyond the Headlines

When a private airline chooses to sell a 25% stake to a foreign carrier, it’s tempting to jump to conclusions: “Are they in financial trouble? Is this a sign of weakness?” The reality, however, is often more strategic and layered than it seems.

Here’s a breakdown of the key drivers behind such a decision:

1. Strategic Alignment & Network Synergies
Airlines today operate in a highly globalized, interconnected environment. A minority equity stake can solidify a commercial partnership — aligning schedules, codeshare agreements, frequent flyer programs, and even joint ventures. It’s about offering more value to customers across both networks.

2. Access to International Markets
Foreign ownership often signals deeper cooperation. It can unlock regulatory approvals, gate slots, and route rights that otherwise take years to secure. It's a shortcut to scaling globally, especially for mid-sized Co.

3. Financial Backing Without Ceding Control
Selling a 25% stake can provide a cash infusion for fleet renewal, tech investment, or network expansion — all while maintaining operational control. In the case of a private equity-owned airline (like WestJet under Onex), it also offers a partial liquidity event, de-risking the investment without a full exit.

4. Economies of Scale & Cost Sharing
Shared procurement of aircraft, parts, , and services can reduce costs . Think of it as leveraging group buying power without merging. Especially in a tight-margin industry like aviation, these efficiencies matter.

5. Signaling Strength, Not Weakness
Far from signaling failure, a deal like this may demonstrate confidence. A foreign airline — often a legacy or global player — doesn’t invest lightly. Their due diligence affirms the target’s long-term viability and strategic fit.

So — is it about needing cash? Maybe. But that’s only one piece of a much bigger chessboard.

In the case of WestJet, if such a deal happened, it could signal a recalibration: Onex monetizes part of its investment, WestJet gains a strategic partner to fuel global growth, and both tap into mutual strengths — whether transatlantic access, feeder traffic, or commercial alignment.

In modern aviation, partnerships are power. Selling 25% is less about selling out, and more about buying into the future.

Diversity has officially landed in corporate Alberta — and not just in boardroom buzzwords. With French, American, Canadian, and now Korean ownership stakes shaping one of its most iconic companies, the once oil-and-ranch-dominated business landscape is getting a global makeover. It's no longer just hashtag#Calgary vs. hashtag#Toronto — it's hashtag#Seoul, hashtag#Paris, and hashtag#Atlanta in the mix. For some, it's a wake-up call; for others, it’s the kind of international validation Alberta business has long craved.

Mike Miguel • Commercial Strategy : Planning- Insights & Business Development | Business Engineering | Start-Ups | VP level | People first | Operations & Sales | Transformation | M & A | Multilingual & Cultural Aware.