Delta Air Lines and Korean Air Lines will jointly acquire a 25% stake in Canada’s WestJet Airlines from Onex Corp. The purchase price is $550 million.
Delta will invest $330 million for a 15% stake. Korean Air will inject $220 million for a 10% interest. Delta also plans to sell and transfer a 2.3% stake in WestJet to its joint venture partner, Air France-KLM, for $50 million.
Delta announced the transaction on Friday. The Reuters Tariff Watch newsletter provides a daily guide to global trade and tariff news.
WestJet will continue to be owned and controlled by Onex. It has had various partnerships with Delta and Korean Air since 2011.
Onex Partners Co-Head Tawfiq Popatia stated, “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.”
Canadian airlines are experiencing a decline in U.S.-bound bookings. This decline follows President Donald Trump’s tariffs on Canada and suggestions that the U.S. should annex the country.
Air Canada, the country’s largest airline and a WestJet rival, lowered its annual adjusted core profit forecast on Thursday. The reasons are waning trans-border travel, a weakening local currency, and trade tensions with the U.S.
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