Korean Air and Delta Deepen Ties with WestJet to Expand Partnership Network
In a significant move to strengthen international aviation alliances and enhance global travel networks, Korean Air and Delta Air Lines have announced that they will each acquire minority equity stakes in WestJet, one of Canada’s leading carriers. The stakes will be purchased from Onex Partners, the private equity platform of Onex Corporation—a prominent Canadian investment firm and alternative asset manager. This transaction is set to deepen the existing partnerships between these airlines and WestJet, aligning strategic goals across North America, Europe, and Asia.
The landmark investment agreement, revealed in early May, will see Korean Air and Delta collectively acquire a 25% ownership share in WestJet. Delta will take the larger share, investing approximately US$330 million for a 15% stake. Korean Air will contribute US$220 million to secure a 10% interest in the Canadian airline. These transactions underscore both airlines’ commitment to long-term collaboration with WestJet and reflect a broader strategy of building cross-continental networks through equity partnerships.
Notably, Delta also plans to further its global integration strategy by transferring a portion of its newly acquired WestJet stake—approximately 2.3%—to Air France-KLM, its transatlantic joint venture partner. This proposed transfer, valued at US$50 million, is contingent on receiving internal approvals from Air France-KLM and would enhance that group’s presence in North American aviation while further consolidating joint strategic interests between all parties.
Despite the change in ownership structure, Onex Group will maintain majority ownership and control of WestJet. Funds affiliated with Onex and its co-investors will continue to play a significant role in the airline’s direction. Nevertheless, the inclusion of world-class airline operators such as Delta and Korean Air as minority stakeholders marks a new era of strategic alignment for WestJet, which is headquartered in Calgary, Alberta.
A New Chapter in Longstanding Partnerships
While these equity investments are new, the relationships between WestJet and its new stakeholders are well-established. Delta and WestJet have partnered since 2011 through a comprehensive codeshare agreement that allows customers on both sides of the U.S.-Canada border to benefit from expanded access to routes and streamlined travel experiences. This partnership has helped increase international connectivity for Canadian travelers and has made it easier for U.S.-based passengers to explore destinations across Canada and beyond.
Korean Air’s alliance with WestJet began in 2012 and has similarly focused on codeshare operations, particularly to facilitate transpacific travel. The Korean flag carrier operates flights from its global hub at Seoul Incheon International Airport to major Canadian cities including Vancouver, Toronto, and Calgary. Through their ongoing cooperation, Korean and WestJet have developed a network that enables travelers to move efficiently between Asia and North America, with access to extensive onward connections via WestJet’s domestic routes and Korean Air’s Asian destinations.
Executives Highlight Global Network Synergies
Executives from all participating airlines have emphasized that these investments are about more than financial returns—they represent a shared vision for a seamless, global passenger experience. By aligning strategically and financially, Korean Air, Delta, and WestJet aim to offer customers greater flexibility, convenience, and choice when traveling across continents.
Walter Cho, Chairman and CEO of Korean Air and parent company Hanjin Group, commented on the partnership’s value for enhancing transpacific travel. “We are pleased to invest in WestJet as part of our continued commitment to enhancing transpacific connectivity,” said Cho. “This strategic partnership will enhance our global network and create long-term value for customers through greater choice and convenience.”
Echoing this sentiment, Ed Bastian, CEO of Delta Air Lines, said the move reflects Delta’s long-standing commitment to cross-border collaboration and global network expansion. “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 Bastian. “Together, Delta and our airline partners are connecting the world and transforming the future of travel.”
From the perspective of WestJet’s current owners, the addition of these strategic investors adds significant strength to the airline’s future. Tawfiq Popatia, Co-Head of Onex Partners, welcomed the move, saying, “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.”
Meanwhile, WestJet CEO Alexis von Hoensbroech acknowledged that the new partnership reflects strong confidence in the airline’s people and performance. “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,” he said.
A History of Strategic Equity Partnerships
For Delta Air Lines, the investment in WestJet follows a proven pattern of deepening relationships with international partners through equity stakes. Over the past decade, Delta has made similar investments in other global carriers, including Air France-KLM, LATAM, Aeromexico, Virgin Atlantic, China Eastern, and Korean Air’s parent company, Hanjin KAL. These investments have helped Delta build one of the world’s most integrated and expansive airline networks, creating joint ventures and strategic alliances that benefit millions of travelers each year.
Korean Air, for its part, continues to focus on expanding its reach and reinforcing its alliances across strategic geographies. The investment in WestJet helps strengthen its presence in North America and supports its long-term vision of being a central hub for transpacific travel through its Seoul Incheon base.
WestJet has also evolved from a regional carrier into a competitive international airline, known for its service quality and growing route network. With backing from strategic partners and private equity leadership, the airline is well-positioned to play a more prominent role in global aviation.
Enhanced Customer Experience Through Alliance Synergies
For travelers, the implications of this agreement are substantial. The closer integration of WestJet with Delta and Korean Air is expected to result in improved scheduling coordination, easier baggage transfers, enhanced loyalty program reciprocity, and increased connectivity at key international hubs. Passengers will benefit from smoother transitions across partner networks, especially in complex long-haul itineraries that require multiple carriers.
These enhanced partnerships also pave the way for broader coordination on frequent flyer programs, customer service standards, and premium travel offerings. Passengers could eventually enjoy greater status recognition and benefit-sharing across the SkyTeam alliance (of which Delta and Korean Air are members), though WestJet itself is not currently part of a global alliance.
Financial and Regulatory Considerations
Barclays is acting as the financial advisor to WestJet and Onex for the transaction, which remains subject to customary regulatory approvals in Canada and other jurisdictions. These reviews will ensure compliance with foreign ownership limits, competition policies, and aviation regulations.
Upon approval and closing of the transaction, the new shareholding structure will formally integrate WestJet into a stronger global framework while preserving its operational autonomy under Onex’s continued leadership.
As global air travel rebounds and evolves post-pandemic, strategic collaborations like this one highlight the increasing importance of scale, network integration, and customer-centric innovation. With Korean Air and Delta taking active equity positions in WestJet, the groundwork is being laid for a more seamless, interconnected future of travel across North America, Asia, and Europe.
This trilateral partnership represents not only a financial investment but a commitment to delivering enhanced value and connectivity to millions of passengers worldwide.