Delta, Korean Air, and Air France-KLM are officially part-owners of Canadian airline WestJet.
Alternative asset manager Onex Partners, WestJet’s parent company, said Wednesday that it sold 25% of the airline as part of a deal first announced in May.
According to Onex, Delta acquired a 15% stake in WestJet, while Korean Air took a 10% stake. Upon closing, Delta sold 2.3% to Air France-KLM.
Onex will retain 75% of WestJet, preserving its ownership and control over the carrier.
Onex and WestJet leaders said the deal will enhance international connectivity, give WestJet access to innovations produced by its new part-owners, and generate gains for investors.
A WestJet 737 at LAX. (Photo: AirlineGeeks | Ben Suskind)
“This closing marks a milestone in our airline partnerships, building on existing relationships and reflecting confidence in WestJet’s strategy, performance, and people,” WestJet Group CEO Alexis von Hoensbroech said in a statement. “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.”
In May, Onex said that Delta and Korean Air would pay $330 million and $220 million, respectively, for their stakes in WestJet, while Air France-KLM would pay Delta $50 million for its smaller share. Updated financial details were not provided Wednesday.
WestJet has had codeshare partnerships with Delta and Korean Air for close to 15 years.