Key Takeaways
• Delta and Korean Air invest US$550 million for 25% of WestJet, Canada’s second-largest airline.
• Onex retains 75% control of WestJet to comply with Canadian foreign ownership regulations.
• Deal could expand routes, align loyalty programs, and increase competition with Air Canada’s Star Alliance.
Delta Air Lines and Korean Air to Buy Major Stake in WestJet: What Travelers and the Airline Industry Need to Know
Delta Air Lines and Korean Air have announced one of the largest airline investments in recent years. Together, they will buy a 25% stake in WestJet, the second-biggest airline in Canada 🇨🇦. This deal, worth US$550 million, marks a big moment in North American and global aviation. With this move, major changes could be coming for travelers, the airline industry, and even immigration patterns thanks to better flight options between the United States 🇺🇸, Canada 🇨🇦, Europe 🇪🇺, and Asia 🌏.
Let’s take a deeper look at why this deal matters, how the ownership will change, and what travelers and businesses can expect in the coming years.
Breaking Down the Deal: Who’s Involved and What’s Changing
Delta Air Lines, one of the world’s largest airlines, will put in US$330 million for a 15% share in WestJet. Korean Air, which is the main airline of South Korea 🇰🇷, will invest US$220 million for a 10% share. The shares will be bought from Onex Partners, a Canadian private equity company that has owned WestJet since 2019.
But there’s more. After this first deal goes through, Delta Air Lines plans to sell a 2.3% piece of its WestJet shares to its longtime partner, Air France-KLM, for US$50 million. However, this step depends on getting the green light from regulators and meeting certain rules.
Even with these changes, Onex will still hold a 75% share and control WestJet. This is important because Canadian law says airlines must stay majority-owned and controlled by Canadians. Keeping Onex at 75% helps WestJet follow those rules.
Here’s a quick view of how the new ownership will look:
- Onex Group: 75% (no new money invested)
- Delta Air Lines: 15% at first (US$330 million), later 12.7% after its planned sale to Air France-KLM
- Korean Air: 10% (US$220 million)
- Air France-KLM: Up to 2.3% (US$50 million), if regulators approve
The amounts could change if the Air France-KLM deal is delayed or changed by regulatory bodies.
Why Are Delta Air Lines and Korean Air Investing?
This move isn’t just about money. It’s about working together more closely to give travelers more options and smoother trips between some of the world’s busiest regions.
Deeper Partnerships and Codeshare Flights
Delta Air Lines, Korean Air, and WestJet are already partners. They have “codeshare” deals, which means you can buy a ticket from one airline but fly on another’s planes, with coordinated schedules and checked baggage. By buying into WestJet, Delta Air Lines and Korean Air want to make it even easier for customers to move between the U.S., Canada 🇨🇦, Asia, and further into Europe.
Connecting North America with the World
As President Ed Bastian of Delta Air Lines said, this investment “aligns our interests” and lets the airlines focus together on making travel between the U.S. and Canada 🇨🇦 simple and smooth. For Delta Air Lines, the U.S.-Canada rail is one of the busiest and most profitable international markets.
Walter Cho, who heads Korean Air, called it a “strategic partnership” that will make their worldwide network bigger and create more choice for travelers. Korean Air, based in Asia, gains stronger links not only with Canada 🇨🇦 but across all of North America.
Better Customer Experience
All three airlines say travelers can expect an easier, more connected experience once the deal goes through. This could mean things like:
– Better-matched flight times for layovers
– More options to earn and use frequent flyer miles
– One-stop check-in and baggage transfer for connecting flights
– Smoother problem solving if flights are delayed or canceled
All of this will likely make it less stressful to plan and take a journey involving more than one airline from the group.
Shifting Power in the Airline Industry
The investment is more than a one-time deal. It could tip the scales of power among the world’s airline alliances.
- Challenging Air Canada’s Star Alliance
Right now, Air Canada 🇨🇦 is part of Star Alliance, the largest airline group in the world, which includes United Airlines 🇺🇸, Lufthansa 🇩🇪, and others. WestJet, up to now, hasn’t been part of any big alliance even though it works with several airlines.
This new share purchase links WestJet even more to the SkyTeam alliance, which counts Delta Air Lines, Korean Air, and Air France-KLM as members. While WestJet won’t be an official SkyTeam member—for now—many experts believe it could join soon, giving SkyTeam a stronger presence in Canada 🇨🇦 and offering more partnership flights. -
More Choices for Canadian Travelers
This move could give Canadian 🇨🇦 flyers another option for global trips. Instead of being limited to Air Canada 🇨🇦 and its partners, you could pick WestJet and connect with Delta Air Lines, Korean Air, or even Air France-KLM for trips to the U.S., Asia, or Europe. -
Boosting Global Competition
By investing in WestJet, Delta Air Lines and Korean Air are making sure that SkyTeam can better compete with Star Alliance in Canada 🇨🇦, the U.S. 🇺🇸, and abroad. This may lead to better prices, more routes, and improved service for travelers as airlines try to win over customers.
As reported by VisaVerge.com, this deal not only mixes financial strength but also deepens strategic partnerships that shape how people move between continents.
The Role of Laws and Regulators
One big question is whether the Canadian 🇨🇦 government and other regulators will say yes to this deal. The law in Canada 🇨🇦 says its airlines have to be majority-owned and controlled by Canadians. That’s why Onex is keeping 75% of the shares and control, even after bringing in these big foreign partners.
Any change in airline ownership in Canada 🇨🇦 also needs approval from several watchdogs, including competition authorities. The government will look at whether this deal may lead to less competition and hurt consumer choice.
Delta Air Lines and Korean Air are structuring their investment to avoid breaking any of these rules, but until the paperwork is done, nothing is final.
For more details on Canadian airline ownership rules, you can read the official guidelines from Transport Canada.
What Travelers Can Expect
For people who fly between Canada 🇨🇦, the U.S. 🇺🇸, Asia, and Europe, the impact of this deal could be big. Here’s what may change:
- More Routes and Destinations
Travelers could see new flight routes connecting smaller cities in Canada 🇨🇦 to the U.S. 🇺🇸, Asia, and Europe. That could mean less need to change planes, or more direct flights to places that matter for business or family. -
Easier Booking and Fewer Headaches
Since these three airlines will work together more closely, booking tickets, checking luggage through to your final stop, and earning or using miles could become simpler. That saves time and makes flying less stressful. -
Better Rewards
Many travelers are loyal to a certain airline to collect points or miles. By connecting loyalty programs, flying with WestJet, Delta Air Lines, or Korean Air could help you get closer to a free trip, no matter which of their planes you ride. -
Shorter Wait Times
If the airlines align their schedules better, layover times could drop. You’ll spend less time waiting in airports and more time at your destination. -
Customer Service Upgrades
More cooperation often means sharing best customer service practices. If your flight is delayed or canceled, having three linked airlines means they might be able to handle the problem faster and offer you better options.
For Businesses and Immigration
This deal is important not just for regular travelers, but also for businesses and people moving for work, study, or immigration. Here’s why:
- Global Business Connections
Companies in Canada 🇨🇦, the U.S. 🇺🇸, and Asia 🇰🇷 benefit when it’s easier to fly staff between offices or to meet clients. More direct routes save time and help business run more smoothly. -
Supporting Immigration and Study
With simpler flight options, people moving between these regions for school, work, or family will find travel less challenging. It could be easier for international students to get to Canadian 🇨🇦 universities or for Canadian 🇨🇦 professionals to work in the U.S. 🇺🇸 or Asia.
Quick and easy flights support ties between countries, helping support not just tourism, but also programs where workers, students, and families can move and settle in new places. -
Boost to Local Economies
More visitors from Asia and the U.S. spend money in Canadian 🇨🇦 cities, helping hotels, restaurants, and local attractions. Likewise, easier travel can help Canadian 🇨🇦 goods and services reach new markets, which can boost job growth at home.
Will WestJet Join SkyTeam?
Many experts wonder if WestJet will soon join the SkyTeam alliance, just like Delta Air Lines, Korean Air, and Air France-KLM. While nothing is official, this deal makes future membership seem more likely. If WestJet joins SkyTeam, travelers could see even more connected rewards, shared services, and flight choices.
How Does This Affect the Average Traveler?
- You might see more WestJet planes landing in new cities around the world.
- Prices could become more competitive as airlines try to win business from Air Canada and its Star Alliance partners.
- With closer ties between WestJet, Delta Air Lines, and Korean Air, your entire trip might be simpler—from booking to baggage claim.
Market and Industry Impact
This is one of the biggest foreign investments in a Canadian 🇨🇦 airline since Onex bought WestJet in 2019. It signals that Canada 🇨🇦 remains an important market for foreign airlines—even as strict laws remain in place to keep airlines in Canadian hands.
It’s also a sign that airline groups are looking for new ways to work together, rather than compete head-on. By sharing resources, flights, and rewards, they hope to keep loyal flyers coming back.
Looking Ahead: What’s Next?
The deal still depends on approval from the Canadian 🇨🇦 government and other regulators. That includes making sure the law on majority Canadian 🇨🇦 ownership is met and that the move doesn’t hurt competition.
If the deal is cleared, expect to see changes over the next year or two in how you can fly between North America, Asia, and Europe as these airlines work out schedules, rewards, and benefits for their shared customers.
For travelers, businesses, students, and immigrants, this could mean more convenience and choices when flying long distances. For the airline industry, it is a sign that big partnerships crossing borders are here to stay as airlines look for ways to expand without breaking the rules.
Final Thoughts
Delta Air Lines, Korean Air, and WestJet’s coming together marks an important chapter for Canada 🇨🇦 and cross-border travel. With more routes, better service, and easier connections on the horizon, the effects could be felt for many years—affecting not just vacations, but also business growth, student journeys, and family ties that stretch across continents.
As this high-profile deal gets closer to approval, all eyes will be on how well these airlines can work together under Canada’s 🇨🇦 rules while offering new choices and better service to travelers everywhere.
Learn Today
Codeshare → An agreement where airlines sell seats on each other’s flights, providing more routes and coordinated schedules for passengers.
SkyTeam alliance → A global airline alliance featuring coordinated services and benefits, including Delta Air Lines, Korean Air, and Air France-KLM.
Foreign Ownership Rules → Canadian law mandating airlines remain majority-owned and controlled by Canadian citizens or companies.
Regulatory Approval → Official permission from government authorities required before large business deals, such as mergers or foreign investments, can proceed.
Frequent Flyer Miles → Points earned by traveling with airlines, which can be redeemed for tickets, upgrades, or other rewards within participating programs.
This Article in a Nutshell
Delta Air Lines and Korean Air are acquiring a 25% stake in WestJet for US$550 million. This high-profile partnership could reshape North American air travel, linking more destinations and airline loyalty programs, while increasing competition in Canada. Regulatory approval is still needed to finalize this transformative industry deal.
— By VisaVerge.com
Read more:
• Air Canada and WestJet boost transatlantic routes for summer 2025
• WestJet Makes Connecting to Customer Service Easier Than Ever
• WestJet Airlines Notes Canadians Choosing South America Over the US
• WestJet Reports 25% Drop in U.S. Travel Demand Amid Tariff Talks
• Singapore Airlines Strikes Bold Sustainable Aviation Fuel Deal
