Delta, Korean Buy 25% Of WestJet

Delta Air Lines and Korean Air have joined to take a 25% stake in WestJet, Canada's second-largest airline and a longtime code share partner of both new investors. Delta is paying $330 million for 15% of WestJet and Korean is getting 10% for $220 million. After the deal closes, Delta will sell 2.3% of its stake to Air France/KLM for $50 million. WestJet is owned by Onex Corp., a Canadian investment firm, which at one time owned Spirit AeroSystems in Wichita. It offers scheduled service to all major Canadian cities and serves Europe and Asia from hubs in Calgary and Toronto. Canadian regulations require that airlines registered in Canada be majority owned by Canadian companies or individuals.

"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 in a statement. Bastian was CEO of WestJet before moving to Delta. Onex said the deal will help all the parties involved. "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."