Korean Air has officially completed the acquisition of a 10% stake in WestJet, Canada’s second-largest airline, marking a significant step in its efforts to expand across North America. The deal positions Korean Air alongside Delta Air Lines and Air France-KLM as strategic shareholders, forming a transatlantic “triangle alliance” aimed at deepening cooperation and expanding routes across North and Latin America.
According to an announcement from WestJet on October 23, Korean Air finalized its purchase of a 10% equity stake in Kestrel Topco, WestJet’s parent company. The closing comes roughly five months after the initial investment announcement in May. The transaction was completed as WestJet’s controlling shareholder, Onex Partners Group, sold a 25% stake to three strategic airline partners.
The total deal, valued at $550 million, saw Delta Air Lines investing $330 million for a 15% stake and Korean Air contributing $220 million for its 10% share. Delta subsequently transferred 2.3% of its holdings to its joint venture partner, Air France-KLM, resulting in final ownership stakes of Delta Air Lines (12.7%), Korean Air (10%), and Air France-KLM (2.3%). Onex Partners retains a controlling 75% stake in WestJet.
The investment strengthens Korean Air’s strategic position within its global alliance network, particularly on transpacific and transatlantic routes. Korean Air already operates a joint venture with Delta Air Lines on Pacific routes and maintains a long-standing strategic partnership with Air France-KLM through the SkyTeam alliance.
WestJet ranks as Canada’s second-largest carrier after Air Canada, operating an extensive network across the country as well as routes to the Caribbean, Mexico, and Latin America. Through the partnership, Korean Air plans to expand its codeshare agreement with WestJet and explore new joint routes to Canada and Latin America.
“This investment underscores the confidence global airlines have in WestJet’s growth strategy, people, and potential,” said Alexis von Hoensbroech, CEO of WestJet Group. “We look forward to working closely with our new shareholders, including Korean Air, to create long-term value for our customers and partners.”
Tawfiq Popatia, Managing Director at Onex Partners and a WestJet board member, added, “Our new shareholders represent some of the most innovative and successful airlines in the world. Their investment further validates WestJet’s strong performance and resilience in the post-pandemic aviation landscape.”
With the transaction now complete, Korean Air is expected to accelerate its North American growth strategy while reinforcing its presence within the global airline alliance ecosystem.
