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Back in May, I wrote about Delta Air Lines and Korean Air looking to purchase a 25% stake in Canadian carrier, WestJet. The two airlines have now spent a combined $550 million (Delta at $330 million and 15% with Korean Air at $220 million and 10%). Delta and Korean Air have been codeshare partners with WestJet for a long time and this purchase is said to bring them even closer together and strengthen connectivity between Canada and North America, Europe and Asia, and beyond.
The minority equity stakes in this transaction were purchased from Onex Partners (who also own most of my former employer Emerald Expositions).Upon closing, Delta Air Lines sold and transferred a 2.3% stake in WestJet to its Joint Venture partner Air France-KLM. The Onex Group, which includes Onex Partners, will continue to own and control WestJet. It will retain 75% of the original investment.
Tawfiq Popatia, Head of Onex Partners and Board Director at WestJet, said:
Our new partners are widely regarded as among the best-performing and most innovative airlines in the world. This investment has created a terrific amount of value for Onex Partners and its investors to date, including through the unprecedented headwinds posed by the pandemic. We look forward to building on this track record for all of WestJet’s investors, both new and continuing.”
Alexis von Hoensbroech, Chief Executive Officer of the WestJet Group, added:
This closing marks a milestone in our airline partnerships, building on existing relationships and reflecting confidence in WestJet’s strategy, performance, and people. We are proud to welcome our new airline shareholders and look forward to further strengthening our partnerships with their airlines to create long-term value for guests.”
Delta and WestJet have been partners since February 2011. I have flown WestJet and love that I can credit the flights to my Delta SkyMiles® account. Korean Air and WestJet began their partnership in June 2012. This acquisition makes sense for all parties and keeps WestJet closely aligned with SkyTeam. As I have said before, I would not be shocked to see WestJet join the alliance in the future. Air Canada is a founding member of Star Alliance and closely tied to Lufthansa and United through its transatlantic joint venture (I don’t see that changing).
Anthony’s Take: This deal has no impact on passengers, but will hopefully see even closer connections in the future. Let’s see if WestJet joins SkyTeam in the future.
(Image Credits: Delta Air Lines, Korean Air, and WestJet.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
