Onex selling minority stakes in WestJet to Delta and Korean Air

Onex Corp. is selling minority stakes in WestJet to Delta Air Lines and Korean Air for a total of $550 million US.

Under the deals announced Friday, Delta will acquire a 15 per cent stake in the Calgary-based airline for $330 million US, while Korean Air will buy a 10 per cent stake for $220 million US.

After the deal closes, Delta plans to sell a 2.3 per cent stake in WestJet to its joint venture partner Air France-KLM for $50 million US.

Onex acquired WestJet in 2019.

"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."

WestJet and Delta have been partners since February 2011, and Korean Air and WestJet have partnered since 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.

Delta, Korean Air, KLM and Air France are members of the SkyTeam Airline Alliance. Air Canada is a member of 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.