Minority stake of WJ sold

[Airbrake]

https://www.westjet.com/en-ca/news/2025 ... th-westjet

Delta, Korean Air to strengthen partnerships with WestJet

WestJet
By WestJet
|
May 9, 2025
|
Delta and Korean to acquire independent equity stakes totaling 25% in WestJet for US$550 million from Onex Partners and its affiliated funds and co-investors (the “Onex Group”) Agreement will further align airlines’ interests, expand customer benefits and strengthen connectivity between Canada and North America, Europe and Asia and beyond
WestJet MAX 8 aircraft
Delta Air Lines and Korean Air will strengthen their respective partnerships with WestJet through the purchase of minority equity stakes in the Canadian airline from Onex Partners, the upper middle market private equity platform of Onex, a Canadian investor and alternative asset manager. Affiliated funds and co-investors of the Onex Group intend to participate in the sale alongside Onex Partners. These investments build on each airline’s existing relationship with WestJet to provide further benefits to customers in North America, Europe, Asia and beyond.

Under the agreements announced today, 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 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. The Onex Group will continue to own and control Calgary, Alberta-based WestJet.

Delta and Korean have each been codeshare partners with WestJet for years. The broader partnerships will support future benefits for travelers, including an elevated, more seamless travel experience for customers worldwide.

“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 travelers 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. Delta, which is celebrating its 100th anniversary, has proudly been serving the people of Canada for more than 90 years. In recent years, Delta has made equity investments with several international partners, including Air France-KLM, LATAM, Aeromexico, Virgin Atlantic, China Eastern and Korean Air’s parent company, Hanjin KAL.

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.

Barclays is acting as financial advisor to WestJet and Onex on the transaction. The agreement is subject to certain regulatory approvals.

[MaxAuto]

This is great news for the airline, it's employees, and customers.

I hope they bring more hub and spoke to eastern Canada.

Fingers crossed for more wide bodies.

[ICUP]

Can you please elaborate how an bigger, foreign airline, with its own set of ambition and goals, buying a minority stake of a smaller airline is unequivocally a good thing for everyone? Genuinely curious.

[MaxAuto]

It's an injection of half a billion dollars invested into the airline along with an improved network across the airline that will benefit customers and contribute to long-term growth.

It's a recognition of the value and the confidence Delta and Korean have in the airline.

[boeingboy]

It's an injection of half a billion dollars invested into the airline along with an improved network across the airline that will benefit customers and contribute to long-term growth.

It's a recognition of the value and the confidence Delta and Korean have in the airline.

Umm....first of all the airline probably wont see any of that money - it was paid to Onyx and went into their piggybank to do with as they please.

Second - it could be simply that they want to make money by selling the shares after the IPO is issued. I really don't see any changes to the airline itself.

[goingnowherefast]

How much did Onex buy WJ for? Cause they sold 25% for 550 million. That's a 2.2 billion valuation.

No doubt Delta and Korean will use WJ for better access and control of the Canadian domestic market offerings. Hard to say if it's good or bad for employees. It's certainly a vote of confidence in WJ's domestic offerings. But they'll want to do the overseas/WB stuff themselves.

[julcancro]

Can you please elaborate how an bigger, foreign airline, with its own set of ambition and goals, buying a minority stake of a smaller airline is unequivocally a good thing for everyone? Genuinely curious.

It’s not a takeover, it’s a seat at the table. WestJet’s still 75% Canadian-owned ,Delta and Korean just bought themselves some skin in the game. They’re not here to boss WestJet around, they’re here to make sure it grows in the right direction… ideally one that connects to their own networks. More feed, more reach, more know-how. If WestJet plays it smart, it’s a boost — not a buyout

[julcancro]

It's an injection of half a billion dollars invested into the airline along with an improved network across the airline that will benefit customers and contribute to long-term growth.

It's a recognition of the value and the confidence Delta and Korean have in the airline.

Umm....first of all the airline probably wont see any of that money - it was paid to Onyx and went into their piggybank to do with as they please.

Second - it could be simply that they want to make money by selling the shares after the IPO is issued. I really don't see any changes to the airline itself.

You're right that the cash went to Onex, this was a secondary sale, not a direct capital injection into WestJet. But calling it a simple share flip misses some colour on the picture i think.

Delta and Korean Air aren't passive investors. They now got a vested interest in WestJet’s growth, which gives them every reason to support the airline commercially. That includes steering premium connecting traffic from the United States and Asia, especially through hubs like YVR and YYC, where alignment can boost long haul performance.

Without equity, cooperation stays surface level, codeshares, interlines, maybe a lounge agreement. With equity, the relationship deepens. Schedules can be aligned. WestJet can benefit from Delta and Korean’s booking platforms, visibility in global systems, and network feed. WestJet’s success now adds value to their own investment. Onex still holds 75 percent, so WestJet keeps control, but gains serious strategic lift. its not just about cash. Its about unlocking growth.

[goldeneagle]

How much did Onex buy WJ for? Cause they sold 25% for 550 million. That's a 2.2 billion valuation.

Onex paid about 3.5 billion and assumed debt which put the total transaction value around 5 billion at the time of purchase.

[phenix]

How much did Onex buy WJ for? Cause they sold 25% for 550 million. That's a 2.2 billion valuation.

Onex paid about 3.5 billion and assumed debt which put the total transaction value around 5 billion at the time of purchase.

There is a bit of a mix between USD and CAD. The valuation is 2.2b USD or 3.1b CAD

[julcancro]

the sale values WS at around 2.2 billion USD , so quite a bit lower than the ~5 billion CAD figure ( 3.73B USD) when Onex first bought them. But that 2019 number included assumed debt and came in a very different market..pre-COVID. I don’t think anyone’s calling this a bad sign, but it’s also not the full picture. nearly every major airline in the world saw its valuation drop significantly during and after COVID. Demand collapsed, debt levels soared, and recovery has been uneven, especially for international and business travel. Even now, with traffic rebounding, airline stock values and enterprise valuations haven’t fully returned to pre-pandemic highs particularly outside the U.S. In that context, WestJet being valued lower than in 2019 isn’t unusual. Since then theyve streamlined operations, pivoted hard into the leisure space, and now brought in Delta and Korean as equity partners. That’s not just about capital, it’s about long haul feed, network access, and possibly even setting the stage for Skyteam down the line.

Skyteam ascension will definitely be something valuable. Very interesting to watch this. The fact that westjet rewards has switched to points really makes me think they are setting themselves on the path to join skyteam within the decade.

Their valuation may be lower now, but strategically
their new equity investor partners could be a move toward a more connected and competitive position long term.

[flying4dollars]

the sale values WS at around 2.2 billion USD , so quite a bit lower than the ~5 billion CAD figure ( 3.73B USD) when Onex first bought them. But that 2019 number included assumed debt and came in a very different market..pre-COVID. I don’t think anyone’s calling this a bad sign, but it’s also not the full picture. nearly every major airline in the world saw its valuation drop significantly during and after COVID. Demand collapsed, debt levels soared, and recovery has been uneven, especially for international and business travel. Even now, with traffic rebounding, airline stock values and enterprise valuations haven’t fully returned to pre-pandemic highs particularly outside the U.S. In that context, WestJet being valued lower than in 2019 isn’t unusual. Since then theyve streamlined operations, pivoted hard into the leisure space, and now brought in Delta and Korean as equity partners. That’s not just about capital, it’s about long haul feed, network access, and possibly even setting the stage for Skyteam down the line.

Skyteam ascension will definitely be something valuable. Very interesting to watch this. The fact that westjet rewards has switched to points really makes me think they are setting themselves on the path to join skyteam within the decade.

Their valuation may be lower now, but strategically
their new equity investor partners could be a move toward a more connected and competitive position long term.

My thoughts too. This could be great for growing the airline, strengthening it's market share and expanding its reach.

[bobcaygeon]

https://www.upi.com/Archives/1992/12/29 ... e_vignette

[julcancro]

https://www.upi.com/Archives/1992/12/29 ... e_vignette

Interesting flashback. That AA stake in Canadian Airlines was a big move at the time, though it didn’t ultimately save them from being absorbed into AC. Curious why you brought this up now, are you drawing a parallel with something happening today?

[co-joe]

How much did Onex buy WJ for? Cause they sold 25% for 550 million. That's a 2.2 billion valuation.

Onex paid about 3.5 billion and assumed debt which put the total transaction value around 5 billion at the time of purchase.

There is a bit of a mix between USD and CAD. The valuation is 2.2b USD or 3.1b CAD

I'm surprised WS has gone down in value since the takeover. 2.2 Billion for a company with 100, 737's and 6, 787's?

[phenix]

Onex paid about 3.5 billion and assumed debt which put the total transaction value around 5 billion at the time of purchase.

There is a bit of a mix between USD and CAD. The valuation is 2.2b USD or 3.1b CAD

I'm surprised WS has gone down in value since the takeover. 2.2 Billion for a company with 100, 737's and 6, 787's?

Lots of airlines have gone down in value since end of 2019. AC went from 10b to 5, Southwest from 30b to 20b, JetBlue 5b to 2b.
As well, Onex paid a large premium when they bought WestJet, the stock went from C$18 to C$31 overnight, meaning around 70% premium. Covid started 3 month after the deal closed.

I don’t think these valuations take into account the debt

[fish4life]

Onex paid about 3.5 billion and assumed debt which put the total transaction value around 5 billion at the time of purchase.

There is a bit of a mix between USD and CAD. The valuation is 2.2b USD or 3.1b CAD

I'm surprised WS has gone down in value since the takeover. 2.2 Billion for a company with 100, 737's and 6, 787's?

That’s in line with what’s happened with the airline valuations since 2019.
AC’s value right now is roughly 5 billion with 100+ WB’s as one of the worlds top 20 largest airlines.

[co-joe]

Probably shows how much of a losing venture Swoop was.

Lots of upside to the US, Korean, and French investment for WS though. I think it'll be a real positive, especially if they move their focus to more than the 4th largest market in Canada at some point.