BREAKING NEWS: Onex Sells Minority Stakes in WestJet to Delta, Korean Air & AF/KL
by Bruce Parkinson
Photo: A. Michael Brown / Shutterstock.com
Six years after acquiring WestJet in 2019, Onex Corp. is diversifying the airline’s ownership group by selling stakes to some of the world’s largest carriers.
Onex is selling a 15% stake in WestJet to Delta Air Lines for US$330 million and 10% owernship to Korean Air for another $220 million. DL plans to sell a 2.3% stake in the Canadian carrier to its joint venture partner Air France-KLM for US$50 million.
“Delta, Korean and Air France-KLM are among the world’s most prominent and best-managed airlines,” Tawfiq Popatia, co-head of Onex Partners, said in a statement. “Onex is delighted to welcome them as shareholders in WestJet.”
“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.
WestJet and Delta have been partners since February 2011, while Korean Air and WestJet established a partnership back in June 2012.
“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 travellers in the United States and Canada,” Delta CEO Ed Bastian said.
All of the new WestJet owners are members of the SkyTeam Airline Alliance. Air Canada belongs to the rival Star Alliance network.
“This strategic partnership will enhance our global network and create long-term value for customers through greater choice and convenience,” said Walter Cho, chairman and CEO of Korean Air and Hanjin Group.
