It was a busy week for WestJet, highlighted by the news that Delta Air Lines and Korean Air will strengthen their respective partnerships with the company through the purchase of minority equity stakes from the Onex Group, which will continue to own and control the Calgary-based carrier.
Under the agreements announced Friday, Delta and Korean will acquire independent equity stakes totaling 25% in WestJet. Delta will be investing US$330 million and acquiring a 15% stake, and Korean will invest US$220 million in exchange for a 10% stake.
Upon closing, Delta has the right and intent to further sell and transfer a 2.3% stake in WestJet to its Joint Venture partner Air France-KLM, also an existing WestJet partner, in exchange for US$50 million. This separate transaction would remain subject to certain Air France-KLM approvals.
Delta and Korean have each been codeshare partners with WestJet for years. The broader partnerships will support future benefits for travellers, including an elevated, more seamless travel experience for customers worldwide, say the companies.
“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,” said Delta CEO Ed Bastian. “Together, Delta and our airline partners are connecting the world and transforming the future of travel.”
“We are pleased to invest in WestJet as part of our continued commitment to enhancing transpacific connectivity,” said Walter Cho, Chairman and CEO of Korean Air and Hanjin Group. “This strategic partnership will enhance our global network and create long-term value for customers through greater choice and convenience.”
“Delta, Korean and Air France-KLM are among the world’s most prominent and best-managed airlines. Onex is delighted to welcome them as shareholders in WestJet,” said Tawfiq Popatia, Co-Head of Onex Partners.
“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.
Delta and WestJet have been partners since February 2011, providing an expanded global network and seamless travel options for customers on both sides of the U.S.-Canada border.
Korean Air and WestJet have partnered since June 2012, steadily expanding their transpacific connectivity. Through their codeshare agreement, travelers on both sides of the Pacific can access flights between Seoul Incheon and Vancouver, Toronto, and Calgary, with onward connections to WestJet’s domestic Canadian and U.S. routes, as well as Korean Air’s extensive Asian network.
“This does point towards WestJet eventually going down the road of full SkyTeam membership,” said Robert Kokonis, president of consulting firm AirTrav Inc. “If WestJet were to become a SkyTeam member bringing WestJet rewards into the global ecosystem of other SkyTeam loyalty programs, that would be a massive change in the Canadian business and leisure travel landscape.”
“This is a very, very smart and shrewd tactical play by WestJet and Onex” Kokonis said.
Onex, a Toronto-based private equity firm chaired by Gerry Schwartz, made a long-coveted leap into aviation in 2019 by signing a friendly deal to buy WestJet in an all-cash transaction of $3.5 billion, or about $5 billion including debt.
Barclays is acting as financial advisor to WestJet and Onex on the transaction. The agreement is subject to certain regulatory approvals.
Other news
Canadian Tire Corporation and WestJet announced a long-term strategic partnership that brings together Triangle Rewards and WestJet Rewards, enhancing the scale and value of both programs while introducing new ways for millions of Canadians to earn rewards across travel and everyday purchases.
Launching in early 2026, the partnership will give Triangle Rewards’ and WestJet Rewards’ members the ability to link their loyalty accounts and enjoy enhanced benefits across both programs, including access to exclusive offers and promotions. Linked members will earn stacked rewards – Canadian Tire Money and WestJet points – whether they’re booking a WestJet flight or vacation package, or shopping at Canadian Tire, SportChek, Mark’s, and other participating CTC banners.
In addition, linked members who pay with their Triangle Mastercard or WestJet RBC Mastercard will benefit from accelerated earn rates when shopping within participating CTC and WestJet businesses. WestJet Rewards members will have the added ability to convert WestJet points into Canadian Tire Money, providing increased flexibility and value when shopping across CTC’s extensive retail network.
eStore
Meanwhile, in partnership with RewardOps, WestJet to launch its first-ever loyalty eStore, where members can tap into an e-commerce website that displays a variety of non-travel rewards that members can choose from, including merchandise from popular brands like Apple, Dyson and KitchenAid, and gift cards.
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