Delta, Korean Air Agree to Acquire WestJet Stakes
Delta Air Lines and Korean Air have agreed to acquire equity stakes in WestJet that will total 25 percent of the Canadian carrier, Delta and Korean announced Friday.
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Delta Air Lines and Korean Air have agreed to acquire equity stakes in WestJet that will total 25 percent of the Canadian carrier, Delta and Korean announced Friday. The Onex Group will continue to serve as the majority owner of WestJet.
The agreements are subject to certain regulatory approvals, according to the carriers.
Korean agreed to invest $220 million in WestJet in exchange for a 10 percent stake. Delta agreed to invest $330 million for a 15 percent stake. Delta and Korean have been partners with WestJet since 2011 and 2012, respectively. Delta also has a joint venture with the carrier.
Separately, upon closing, Delta intends to sell and transfer a 2.3 percent stake in WestJet to joint-venture partner Air France-KLM, also an existing WestJet partner, in exchange for $50 million. This deal is subject to certain Air France-KLM approvals.
"These investments build on each airline's existing relationship with WestJet to provide further benefits to customers in North America, Europe, Asia and beyond," according to statements from Delta and Korean.
