Airlines Strategy
Delta Korean Air Air France-KLM Invest in WestJet Stake
Delta Air Lines, Korean Air, and Air France-KLM acquire 25% stake in WestJet for $550M, enhancing global aviation partnerships and competitive positioning.
In a significant move that could reshape the transatlantic and transpacific aviation landscape, Delta Air Lines, Korean Air, and Air France-KLM have collectively acquired a 25% stake in WestJet, Canada’s second-largest airline. The $550 million investment deepens existing partnerships and signals a strategic shift toward equity-based alliances in the post-pandemic aviation industry. This deal not only strengthens WestJet’s position in the North American market but also enhances the global connectivity of all parties involved.
The acquisition is structured with Delta taking a 15% stake for $330 million, Korean Air acquiring 10% for $220 million, and Delta later transferring 2.3% to Air France-KLM for $50 million. WestJet remains majority-owned by Canadian private equity firm Onex Group, ensuring compliance with Canadian regulations that require airlines to remain majority domestically owned. The move is being hailed by industry leaders as a blueprint for future airline collaborations that prioritize strategic influence over full-scale mergers.
Founded in 1994, WestJet began operations in 1996 as a low-cost carrier with a focus on affordability and a Southwest Airlines-inspired operational model. Over the years, it expanded its fleet and network, eventually offering transatlantic and transpacific services. The 2019 acquisition by Onex Group for $5 billion marked a pivotal moment, transitioning WestJet into private ownership and setting the stage for strategic partnerships.
By 2024, WestJet operated over 180 aircraft and served more than 100 destinations, including Europe and Asia. Despite this growth, the airline remained outside of the major global alliances, relying instead on codeshare agreements with Delta and Korean Air. This new equity investment formalizes those relationships and positions WestJet to better compete with Air Canada, which has a joint venture with United Airlines.
WestJet’s acquisition of Sunwing Airlines in May 2023 further expanded its reach into sun destinations. Initially, the airlines continued independent operations, maintaining a sharp focus on providing an exceptional guest experience and ensuring safe operations. As the two entities transitioned from competitors to collaborators, the combination of these businesses was planned in a way that positioned Sunwing as an instrumental pillar of the WestJet Group, prioritizing the experience of a growing number of guests.
“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,” Ed Bastian, CEO of Delta Air Lines
Delta’s stake in WestJet is consistent with its broader strategy of acquiring minority stakes in international carriers to expand its network without triggering regulatory complications associated with full mergers. Delta currently holds stakes in Virgin Atlantic (49%), Aeroméxico (20%), LATAM (10%), Air France-KLM (3%), and China Eastern (2%).
These investments allow Delta to influence partner operations, integrate loyalty programs, and optimize route planning while maintaining operational independence. The WestJet investment provides Delta with a stronger foothold in the Canadian market, where it competes with American Airlines and United Airlines, both of which have established partnerships with Canadian carriers.
According to Delta CEO Ed Bastian, such equity partnerships offer a “deeper perspective” and “more skin in the game,” fostering long-term collaboration and mutual growth. The WestJet deal is expected to follow this model, enhancing connectivity and customer benefits across North America, Europe, and Asia. The partnership is expected to deliver concrete benefits for WestJet passengers, including expanded route choices, improved loyalty program integration, and enhanced premium services. By tapping into Delta’s U.S. hubs, Korean Air’s transpacific network, and Air France-KLM’s European routes, WestJet will become a more viable option for international travelers.
Operational efficiencies are also anticipated. Shared maintenance facilities, joint crew training programs, and bulk procurement agreements could help reduce costs and improve service standards. These synergies are particularly valuable in an industry still recovering from the economic impact of COVID-19.
The deal also grants Delta and Korean Air board representation within WestJet, allowing for strategic alignment without compromising Onex’s majority control. This ensures that the partnership remains compliant with Canadian ownership regulations while still enabling collaborative decision-making.
Since the pandemic, the aviation industry has witnessed a wave of consolidations and minority investments aimed at stabilizing operations and expanding global reach. Lufthansa’s acquisition of ITA Airways and Alaska Airlines’ purchase of Hawaiian Airlines are recent examples of this trend.
Equity stakes, such as the one Delta now holds in WestJet, offer a middle ground that allows for strategic influence without the regulatory burdens of full mergers. They also enable airlines to share revenue, align schedules, and integrate services while maintaining brand independence.
However, these moves are not without scrutiny. Regulatory bodies, particularly in the U.S., have raised concerns about reduced competition and potential fare increases. While equity investments typically face fewer hurdles than mergers, they are still monitored for their impact on market dynamics.
Canada’s aviation market is heavily concentrated, with Air Canada commanding approximately 53% of domestic capacity and WestJet holding around 26%. Smaller ultra-low-cost carriers like Flair Airlines and Lynx Air have struggled to gain traction, often citing high operational costs and limited airport access.
WestJet’s new partnership strengthens its position against Air Canada, especially in transborder and international markets. However, the competitive response from Air Canada has been muted so far. CEO Michael Rousseau stated, “We’ll monitor it… but we don’t expect anything.” Compliance with Canada’s ownership rules remains a key factor. Onex’s 75% stake ensures that WestJet remains a Canadian airline, while the foreign partners gain strategic input without breaching regulatory limits.
Despite its potential, the partnership faces several challenges. Geopolitical tensions, particularly between the U.S. and Canada, have dampened travel demand. In May 2025, WestJet suspended nine U.S. routes due to reduced passenger volumes, a trend attributed in part to political rhetoric and trade policies.
Operational integration also presents hurdles. Harmonizing reservation systems, loyalty programs, and crew operations across four airlines (WestJet, Delta, Korean Air, Air France-KLM) will require significant investment and coordination.
Cultural differences between the partners could also pose challenges. WestJet’s employee-centric culture may contrast with the more corporate environments of its new stakeholders, potentially complicating internal alignment and decision-making.
The acquisition of a 25% stake in WestJet by Delta, Korean Air, and Air France-KLM marks a strategic evolution in how airlines collaborate globally. It reflects a broader industry shift toward equity-based alliances that offer network expansion and operational synergies without the complexities of full mergers.
While the deal strengthens WestJet’s competitive position and enhances global connectivity, its long-term success will depend on effective integration, regulatory compliance, and responsiveness to shifting market dynamics. As airlines increasingly adopt “coopetition” strategies, this partnership could serve as a model for future cross-border collaborations in aviation.
What percentage of WestJet was acquired by Delta, Korean Air, and Air France-KLM? Who retains majority ownership of WestJet? What are the benefits for WestJet passengers? How does this deal comply with Canadian regulations? What challenges does the partnership face? Sources: Reuters, WestJet, Government of Canada, WestJet Media Room
Delta, Korean Air, and Air France-KLM Acquire Stake in WestJet: A Strategic Realignment in Global Aviation
Strategic Rationale Behind the Investment
WestJet’s Growth Trajectory and Strategic Positioning
Delta’s Minority Investment Strategy
Implications for WestJet and Its Customers
Industry Trends and Competitive Dynamics
Consolidation and Equity Stakes as Industry Norms
Canadian Market Realities
Challenges and Risks Ahead
Conclusion
FAQ
A combined 25% stake was acquired: Delta took 15%, Korean Air 10%, and Delta will transfer 2.3% to Air France-KLM.
Onex Group, a Canadian private equity firm, retains a 75% stake in WestJet.
Passengers can expect expanded international routes, better loyalty program integration, and improved premium service offerings.
Canadian law requires majority domestic ownership of airlines. Onex’s 75% stake ensures compliance while allowing foreign strategic input.
Challenges include geopolitical tensions, operational integration, and aligning different corporate cultures and systems.
Photo Credit: WestJet
Airlines Strategy
Singapore Airlines and Malaysia Airlines Formalize Joint Business Partnership
Singapore Airlines and Malaysia Airlines formalize a strategic partnership to coordinate flights, share revenue, and expand codeshares on the Singapore-Malaysia corridor.
This article is based on an official press release from Singapore Airlines.
On January 29, 2026, Singapore Airlines (SIA) and Malaysia Airlines Berhad (MAB) officially formalized a strategic Joint Business Partnerships (JBP). The agreement marks a significant milestone in Southeast Asian Airlines, following the receipt of final Regulations approvals from the Civil Aviation Authority of Malaysia (CAAM) earlier this month and the Competition and Consumer Commission of Singapore (CCCS) in July 2025.
According to the joint announcement, the partnership allows the two national carriers to coordinate flight schedules, share revenue, and offer joint fare products. This move is designed to deepen cooperation on the high-traffic Singapore-Malaysia air corridor and expand connectivity for passengers traveling between the two nations and beyond.
The formalized agreement enables SIA and MAB to operate more closely than ever before. Key components of the partnership include revenue sharing on flights between Singapore and Malaysia and the alignment of flight schedules to provide customers with more convenient departure times. The airlines also plan to introduce joint corporate travel programs to better serve business clients operating in both markets.
A central feature of the JBP is the expansion of codeshare arrangements. Under the new terms, Singapore Airlines will expand its codeshare operations to include 16 domestic destinations within Malaysia, such as Kota Kinabalu, Kuching, Penang, and Langkawi. Conversely, Malaysia Airlines will progressively codeshare on SIA flights to key international markets, including Europe and South Africa.
Goh Choon Phong, Chief Executive Officer of Singapore Airlines, emphasized the mutual benefits of the agreement in a statement:
“Our win-win collaboration strengthens both carriers’ operations, while delivering enhanced value to customers across our combined networks. This also reinforces the long-standing and deep people-to-people and trade links between Singapore and Malaysia, supporting economic growth and connectivity that will benefit both nations.”
The path to this partnership began in October 2019 but faced delays due to the global pandemic and necessary regulatory scrutiny. The Competition and Consumer Commission of Singapore (CCCS) conducted a thorough review, raising initial concerns regarding competition on the Singapore-Kuala Lumpur (SIN-KUL) route, one of the busiest international air corridors globally.
To secure approval, the airlines committed to maintaining pre-pandemic capacity levels on the route. Additionally, the partnership explicitly excludes the groups’ low-cost subsidiaries, Scoot (SIA Group) and Firefly (Malaysia Aviation Group). This exclusion was a critical revision submitted to regulators to ensure fair competition in the budget travel segment. Datuk Captain Izham Ismail, Group Managing Director of Malaysia Aviation Group, highlighted the strategic importance of the deal:
“This collaboration brings together complementary frequencies and aligned schedules, enabling deeper connectivity between Malaysia and Singapore. Over time, it reinforces MAB’s competitive position by enhancing scale, relevance, and network resilience across key markets.”
Consolidation in a High-Volume Corridor
The formalization of this JBP effectively allows Singapore Airlines and Malaysia Airlines to operate as a single entity regarding scheduling and pricing on the full-service Singapore-Kuala Lumpur route. By coordinating schedules, the carriers can avoid wingtip-to-wingtip flying (flights departing at the exact same time), thereby optimizing fleet utilization and offering a “shuttle-like” frequency for business travelers.
While this strengthens the full-service proposition against low-cost competitors like AirAsia, the regulatory exclusion of Scoot and Firefly is a vital safeguard for consumers. It ensures that price-sensitive travelers retain access to competitive fares driven by the budget sector, while the JBP focuses on premium and connecting traffic.
When does the partnership officially begin? Will this affect frequent flyer programs? Are budget airlines included in this deal?
Singapore Airlines and Malaysia Airlines Formalize Strategic Joint Business Partnership
Scope of the Partnership
Expanded Connectivity and Codeshares
Regulatory Journey and Exclusions
AirPro News Analysis
Frequently Asked Questions
The partnership was formally launched on January 29, 2026, following the final regulatory approval from the Civil Aviation Authority of Malaysia.
Yes. While reciprocal benefits for earning and redeeming miles were enhanced in 2024, the JBP is expected to deepen integration, offering better recognition for elite status holders and improved lounge access across both networks.
No. The low-cost subsidiaries Scoot and Firefly are excluded from this joint business arrangement to comply with regulatory requirements and preserve competition.
Sources
Photo Credit: Montage
Airlines Strategy
Qantas to Exit Jetstar Japan Stake and Rebrand by 2027
Qantas will sell its 33.32% stake in Jetstar Japan to a consortium led by the Development Bank of Japan, ending its Asian LCC venture by mid-2027.
This article summarizes reporting by Reuters.
The Qantas Group has announced it will divest its remaining 33.32% shareholding in Jetstar Japan, selling the stake to a consortium led by the Development Bank of Japan (DBJ). The move, confirmed on February 3, 2026, signals the Australian carrier’s complete departure from the Asian low-cost carrier (LCC) joint venture model.
According to reporting by Reuters, the transaction is expected to conclude by mid-2027, subject to regulatory approvals. While the Airlines will continue operations, it will undergo a comprehensive rebranding, removing the “Jetstar” name from the Japanese domestic market. This decision follows the closure of Qantas’s Singapore-based subsidiary, Jetstar Asia, in July 2025, effectively ending the group’s pan-Asian budget airline strategy.
Under the new agreement, the Development Bank of Japan will enter as a major shareholder, while Japan Airlines (JAL) will retain its controlling 50% stake. Tokyo Century Corporation will also hold its position with a 16.7% share.
Qantas has stated that the financial impact of the sale will be immaterial to its earnings. The primary objective appears to be a strategic realignment rather than an immediate cash injection. The airline’s current flight schedules, routes, and staffing at its Narita Airport base will remain unaffected in the immediate term.
Consumers can expect significant changes to the airline’s visual identity. According to market data, a new brand name is expected to be announced in October 2026, with the full transition away from the Jetstar livery completed by mid-2027. Until then, the carrier will continue to operate under its current name.
The divestment allows Qantas to redirect capital toward its core domestic operations and its ambitious “Project Sunrise” ultra-long-haul international flights. In an official statement regarding the sale, Qantas Group CEO Vanessa Hudson emphasized the shift in focus.
“We’re incredibly proud of the pioneering role Jetstar Japan has played… This transaction allows us to focus our capital on our core Australian operations while leaving the airline in strong local hands.”
Vanessa Hudson, Qantas Group CEO
For Japan Airlines and the DBJ, the move represents a “nationalization” of the carrier’s ownership structure. By transitioning to a Japanese capital-led model, the stakeholders aim to better capture the country’s booming inbound tourism market without the complexities of a cross-border joint venture.
“We will respond flexibly to market changes and maximize synergies with the JAL Group to achieve sustainable growth.”
Mitsuko Tottori, JAL Group CEO
The exit from Jetstar Japan marks the final chapter in Qantas’s retreat from its once-ambitious Asian expansion strategy. For over a decade, the “Jetstar” brand attempted to replicate its Australian success across Asia. However, the closure of Jetstar Asia in Singapore in 2025 demonstrated the difficulties of maintaining margins in a fragmented market saturated by competitors like Scoot and AirAsia.
By selling its stake in Jetstar Japan now, Qantas appears to be executing a disciplined retreat. Rather than continuing to battle high fuel costs and intense regional competition from rivals such as ANA’s Peach Aviation, the Australian group is consolidating its resources where it holds the strongest competitive advantage: its home market and direct international connections.
Despite the ownership change, operational ties between the carriers will not be entirely severed. Qantas and Japan Airlines will maintain their codeshare relationship, and Qantas and Jetstar Airways (Australia) will continue to operate their own aircraft between Australia and Japan. The sale strictly concerns the Japanese domestic joint venture entity.
Masakazu Tanaka, CEO of Jetstar Japan, expressed optimism about the transition in a statement:
“As we look to the next chapter… I am pleased to work with the new ownership group to lead our LCC into the future.”
Masakazu Tanaka, Jetstar Japan CEO
The airline will continue to compete in the Japanese LCC sector, which is currently seeing consolidation as major groups like JAL and ANA tighten control over their budget subsidiaries.
Qantas to Exit Jetstar Japan Stake; Airline Set for Rebrand
Transaction Details and Ownership Structure
Rebranding Timeline
Strategic Rationale
AirPro News Analysis
Future Operations
Sources
Photo Credit: Montage
Airlines Strategy
ANA Holdings FY2026-2028 Strategy Targets Narita Expansion
ANA Holdings plans 2.7 trillion yen investment focusing on Narita Airport expansion, fleet growth, and cargo integration through 2028.
This article is based on an official press release from ANA Holdings.
On January 30, 2026, ANA Holdings (ANAHD) announced its new Medium-term Corporate Strategy for fiscal years 2026 through 2028. Under the theme “Soaring to New Heights towards 2030,” the group has outlined a roadmap shifting from post-pandemic recovery to a phase of aggressive growth, underpinned by a record 2.7 trillion yen investment plan over the next five years.
The strategy identifies the planned expansion of Narita International Airport in 2029 as a critical business opportunity. According to the company, this infrastructure upgrade will serve as a catalyst for expanding its global footprint. Financially, the group is targeting record-breaking performance, aiming for 250 billion yen in operating income by FY2028 and 310 billion yen by FY2030.
A central pillar of the new strategy is the preparation for the massive infrastructure upgrade at Narita International Airport, scheduled for completion in March 2029. This expansion includes the construction of a new third runway (Runway C) and the extension of Runway B, which is expected to increase the airport’s annual slot capacity from 300,000 to 500,000 movements.
ANAHD views this development as a “once-in-a-generation” opportunity. The group’s network strategy is divided into two distinct phases:
To support this expansion, ANAHD plans to introduce new Boeing 787-9 aircraft starting in August 2026. These aircraft will feature upgraded seats in all classes, a move designed to enhance the airline’s premium appeal in the competitive international market. The total fleet is expected to expand to approximately 330 aircraft, exceeding pre-COVID levels.
Following the acquisition of Nippon Cargo Airlines (NCA) in August 2025, ANAHD is positioning itself as a “combination carrier” powerhouse. The strategy outlines a goal to integrate ANA’s passenger belly-hold capacity with NCA’s large freighter fleet, which includes Boeing 747-8Fs.
“The group aims to realize 30 billion yen in synergies, positioning the group as a global logistics powerhouse.”
, ANA Holdings Press Release
By combining these assets, the group intends to expand its Cargo-Aircraft scale (Available Ton-Kilometers) by 1.3 times, targeting leadership in the Asia-North America and Asia-Europe trade lanes. The group’s low-cost carrier, Peach, is also targeted for 1.3x growth in scale. The strategy emphasizes capturing inbound tourism demand through Kansai International Airport and expanding international medium-haul routes.
The financial roadmap set forth by ANAHD is ambitious. The group aims to achieve an operating margin of 9% by FY2028 and 10% by FY2030. To achieve these figures, the company has committed to a 2.7 trillion yen investment over five years, with 50% allocated to international passenger and cargo growth.
AI is another significant investment area, with 270 billion yen allocated to digital initiatives. The group aims to increase value-added productivity by 30% by FY2030 compared to pre-COVID levels. This includes a focus on “Empowerment of All Employees,” training staff as digital talent to combat Japan’s shrinking workforce.
The strategic distinction between ANA and its primary domestic competitor, Japan Airlines (JAL), is becoming increasingly defined by hub strategy and cargo volume. While both carriers are modernizing fleets and targeting North American traffic, ANA’s explicit “dual-hub” timeline, banking heavily on the 2029 Narita expansion, suggests a long-term volume play that complements its high-yield Haneda operations.
Furthermore, the integration of NCA provides ANA with a diversified revenue stream that acts as a hedge against passenger market volatility. By securing dedicated freighter capacity via NCA, ANA is less reliant on passenger belly space than competitors who lack a dedicated heavy-freighter subsidiary, potentially giving them an edge in the logistics sector.
In response to market demands for capital efficiency, ANAHD has signaled a commitment to Total Shareholder Return (TSR). The policy includes maintaining a dividend payout ratio of approximately 20% and introducing a new interim dividend system starting next fiscal year. The group also noted it would execute flexible share buybacks.
On the Sustainability front, the group reiterated its goal of Net-Zero CO2 emissions by 2050, focusing on operational improvements and the accelerated adoption of SAF.
ANA Holdings Unveils Aggressive FY2026-2028 Strategy Targeting Narita Expansion
Strategic Pivot: The “2029 Catalyst”
Fleet and Product Upgrades
Cargo and LCC Integration
Peach Aviation Growth
Financial Targets and Digital Transformation
AirPro News Analysis
Shareholder Returns and Sustainability
Frequently Asked Questions
Sources
Photo Credit: Luxury Travel
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