WestJet Sells 25 Percent Stake to Global Airline Partners

Global Airline Giants Take a Stake in WestJet as Onex Sells 25% Equity

In a significant recalibration of the Canadian aviation landscape, private equity firm Onex Corporation has finalized the sale of a 25% minority equity stake in WestJet. The deal, which closed on October 22, 2025, brings a consortium of global Airlines heavyweights, Delta Air Lines, Korean Air, and Air France-KLM, into WestJet’s ownership structure. This strategic transaction underscores a deepening of existing alliances and signals strong international confidence in Canada’s second-largest airline. For Onex, it marks a pivotal moment, allowing it to realize a substantial return on its 2019 investment while retaining a controlling 75% interest in the Calgary-based carrier.

The move is more than just a financial transaction; it represents a strategic alignment of interests among some of the world’s most prominent airlines. By bringing these partners on board as shareholders, WestJet is poised to enhance its global network, streamline customer travel experiences, and leverage greater operational synergies. The Investments builds upon years of established codeshare and interline partnerships, transforming them into a more integrated and collaborative framework. This evolution is expected to bolster WestJet’s competitive position, particularly as it continues to navigate the complexities of the post-pandemic travel era and challenge the market dominance of its primary competitor, Air Canada.

Breaking Down the Deal: A New Ownership Structure

The transaction, valued at US$550 million, meticulously distributes the 25% stake among the three airline partners. Initially, Delta Air Lines acquired a 15% stake for US$330 million, and Korean Air secured a 10% stake for US$220 million. In a subsequent move that highlights the interconnected nature of global airline alliances, Delta sold a 2.3% stake to its transatlantic joint venture partner, Air France-KLM, for US$50 million. This adjustment finalized the new minority ownership structure, leaving Delta with a 12.7% share, Korean Air with 10%, and Air France-KLM with 2.3%. The Onex Group, which includes its affiliated funds, remains firmly in control with a 75% majority stake.

This arrangement is the culmination of a process that began with Onex’s landmark acquisition of WestJet in 2019 for C$3.5 billion, a deal that took the airline private. Since then, Onex has guided WestJet through a significant restructuring, including navigating the severe turbulence of the COVID-19 pandemic. The sale of this minority stake allows Onex to recoup its initial equity investment while continuing to steer the airline’s long-term strategy. The infusion of capital and expertise from its new partners is expected to create substantial value as WestJet moves forward.

The leadership structure at WestJet will also reflect this new collaboration. As part of the agreement, Walter Cho, the Chairman and CEO of Korean Air, has been appointed to WestJet’s Board of Directors. He joins Benjamin Smith, the CEO of Air France-KLM, who has served on the board since 2021. This direct involvement from the leadership of its new shareholders ensures that the strategic interests of all parties are aligned at the highest level, fostering a more cohesive and powerful alliance.

“This closing marks a milestone in our airline Partnerships, building on existing relationships and reflecting confidence in WestJet’s strategy, performance, and people. We are proud to welcome our new airline shareholders and look forward to further strengthening our partnerships with their airlines to create long-term value for guests.”, Alexis von Hoensbroech, Chief Executive Officer of the WestJet Group.

Strategic Implications and Future Outlook

For each airline involved, this investment is a calculated move to strengthen their global footprint. Delta Air Lines continues its Strategy of acquiring minority stakes in key international partners to create a seamless travel experience for its customers. The enhanced partnership with WestJet solidifies its presence in the crucial U.S.-Canada travel market. Ed Bastian, CEO of Delta, emphasized that the investment “aligns our interests and ensures that we remain focused on providing a world-class global network and customer experience.”

For Korean Air, the deal provides a strategic entry point into the Canadian aviation market, which was valued at an estimated US$33 billion in 2024. It allows the Asian carrier to expand its network reach into North America significantly. Similarly, for Air France-KLM, the investment deepens its ties within the North American market and reinforces its powerful transatlantic joint venture with Delta. These strengthened partnerships are expected to yield tangible benefits, including enhanced codesharing, optimized flight schedules, and potential cost savings in areas like aircraft maintenance, especially given WestJet’s large order of Boeing aircraft.

Looking ahead, the transaction may be a precursor to further strategic moves. Onex has indicated the possibility of an Initial Public Offering (IPO) for WestJet within the next two years, which would return the airline to the public market. This investment from established global carriers is seen by many industry experts as a strong vote of confidence in WestJet’s operational strategy and future growth potential. The move is poised to intensify competition within Canada, offering travelers more integrated and diverse international travel options.

“Our new partners are widely regarded as among the best-performing and most innovative airlines in the world. This investment has created a terrific amount of value for Onex Partners and its investors to date, including through the unprecedented headwinds posed by the pandemic.”, Tawfiq Popatia, Head of Onex Partners and Board Director at WestJet.

A New Chapter for Canadian Aviation

The finalization of this deal marks the beginning of a new chapter for WestJet and the broader Canadian aviation industry. By welcoming Delta, Korean Air, and Air France-KLM as minority shareholders, WestJet has solidified its position on the global stage, transforming long-standing partnerships into a more robust, integrated alliance. This strategic alignment is designed to create long-term value not only for the airlines involved but also for travelers, who can expect more seamless connections and a more competitive market.

As Onex retains majority control, it continues to guide WestJet’s overarching strategy, now bolstered by the expertise and network strength of its new partners. With the potential for a future IPO on the horizon, the airline is well-positioned for growth. This transaction is a clear indicator that despite recent global challenges, there is strong confidence in the future of air travel and in WestJet’s ability to play a leading role in it.

FAQ

Question: Who owns WestJet now?
Answer: The Onex Group, a Canadian private equity firm, remains the majority owner with a 75% stake. A consortium of airlines holds the remaining 25%, with Delta Air Lines owning 12.7%, Korean Air 10%, and Air France-KLM 2.3%.

Question: Why did these major airlines invest in WestJet?
Answer: The investment deepens existing strategic partnerships. For Delta, it strengthens its North American network. For Korean Air, it provides a strategic entry into the Canadian market. For Air France-KLM, it enhances its transatlantic joint venture. Overall, it reflects confidence in WestJet’s strategy and performance.

Question: Will this change the travel experience for WestJet customers?
Answer: The deepened partnerships are expected to enhance the customer experience by providing more seamless travel options, better-integrated flight schedules, and expanded access to a global network of destinations through the partner airlines.

Sources

• WestJet News Release