Airlines Strategy
WestJet Prepares for IPO After Strategic Stake Sale to Global Airlines
WestJet plans an IPO after Onex sells 25% stake to Delta, Korean Air, and Air France-KLM, strengthening global partnerships and fleet expansion.
Canada’s second-largest airlines, WestJet, is signaling a potential return to the public market, a move that could reshape its future and the nation’s aviation landscape. This development comes after a significant strategic maneuver by its majority owner, Onex Corp., a Canadian private equity firm. In a calculated decision, Onex sold a 25% minority stake in the airline to a consortium of global aviation giants: Delta Air Lines, Korean Air, and Air France-KLM. This sale not only allowed Onex to recoup its initial investment but also set the stage for WestJet’s next chapter of growth and expansion.
The notion of an Initial Public Offering (IPO) has been floated by Onex leadership as a “natural next step” for the Calgary-based carrier. Since taking WestJet private in a CAD 3.5 billion deal in 2019, Onex has steered the airline through a significant restructuring. This overhaul involved a sharpened focus on its Western Canadian hub, an expansion of international and transcontinental routes, and a strategic exit from less profitable markets in Eastern Canada. The recent partnership with established international airlines further solidifies this strategy, enhancing WestJet’s global connectivity and competitive edge.
The potential IPO is more than just a financial transaction; it represents a pivotal moment for WestJet. The capital-intensive nature of the airline industry, particularly with ambitious fleet modernization plans on the books, makes a public listing a logical move to fuel future growth. As we delve into the details of the recent stake sale, the strategic rationale behind it, and the implications of a public offering, it becomes clear that WestJet is positioning itself for a new era of expansion and market presence.
The sale of a quarter of WestJet to Delta Air Lines, Korean Air, and Air France-KLM was a multi-faceted strategic success for Onex Corp. The transaction, which closed on October 22, 2025, was valued at $550 million. It effectively de-risked Onex’s investment by allowing the firm to recover the funds it initially put into the 2019 privatization, all while maintaining a commanding 75% majority ownership and control of the airline. This move demonstrates a shrewd financial strategy, securing the initial investment while retaining the potential for future upside.
The new ownership structure is broken down with Onex Corp. holding 75%, Delta Air Lines with 12.7%, Korean Air with 10%, and Air France-KLM holding the remaining 2.3%. Initially, Delta acquired a 15% stake before transferring a portion to its joint venture partner, Air France-KLM. This distribution is not just about capital; it’s about forging powerful alliances. By bringing these specific carriers into the fold, WestJet gains partners that are, as described by Onex Partners’ head Tawfiq Popatia, “widely regarded as among the best-performing and most innovative airlines in the world.”
The benefits of this new partnership extend beyond the boardroom. Deeper cooperation is expected to yield significant operational synergies and cost reductions. A key area for this collaboration will be in aircraft maintenance and fleet management, a crucial factor given WestJet’s substantial aircraft orders. Aligning with members of the SkyTeam Airline Alliance also positions WestJet more competitively against its main rival, Air Canada, which is part of the Star Alliance network.
“An IPO would be a natural next step because airlines are very large, capital-hungry enterprises,”, Tawfiq Popatia, Head of Onex Partners. A primary driver for considering an IPO is WestJet’s ambitious fleet expansion and modernization program. The airline is in the process of significantly growing its operational capacity, a capital-intensive endeavor that a public listing could help finance. WestJet has a substantial order with Boeing that includes sixty B737-10s and seven B787-9s, with options for an additional 25 and four units, respectively. This order is set to double the airline’s widebody fleet and brings its total order book to 128 Boeing aircraft.
As of late 2025, WestJet’s fleet already consists of 193 aircraft, with 123 more on order. This expansion is a clear indicator of the airline’s growth strategy, focusing on both domestic and international routes from its Western Canadian stronghold. The airline’s strategic shift to concentrate on its Calgary hub aligns with the region’s growing economy. Calgary International Airport served 18.9 million passengers in 2024, highlighting the significant potential for expansion in a market with a burgeoning economy. The new strategic partners are expected to play a role in this growth. The collaboration could lead to optimized aircraft costs and more efficient maintenance schedules, which is vital when managing a growing and modernizing fleet. The infusion of capital from an IPO would provide the necessary financial runway to see these ambitious fleet plans through, ensuring WestJet has the modern, efficient aircraft needed to compete on a global scale and expand its network into new markets in Asia, Europe, and the Americas.
The strategic sale of a minority stake has proven to be a masterstroke by Onex, securing its investment while simultaneously strengthening WestJet’s strategic position through powerful new alliances. The move has paved the way for the airline’s next logical evolution: a return to the public markets. An IPO, potentially within the next couple of years, appears to be the centerpiece of Onex’s long-term vision for the carrier. This step would provide the capital necessary to fund its significant fleet expansion and solidify its competitive standing in the North American and international aviation markets.
Looking ahead, WestJet’s trajectory seems set for significant growth. The combination of a focused Western Canadian strategy, a modernized and expanding fleet, and deep partnerships with global airline leaders creates a formidable foundation. A successful IPO would not only fuel this growth but also mark the culmination of a strategic turnaround that began with its privatization in 2019. For the Canadian aviation industry and for travelers, a stronger, publicly-traded WestJet promises increased competition and enhanced global connectivity for years to come.
Question: Is WestJet going public? Answer: WestJet’s majority owner, Onex Corp., has indicated that an Initial Public Offering (IPO) is a “natural next step” for the airline, possibly within the next couple of years.
Question: Who owns WestJet now? Answer: As of late 2025, Onex Corp. is 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 Onex sell a stake in WestJet? Answer: The sale allowed Onex to recoup its initial investment from the 2019 privatization deal while retaining majority control. It also brought in strategic airline partners to foster deeper cooperation, reduce costs, and enhance WestJet’s global network.
Sources: ch-aviation
WestJet’s Strategic Shift: A Potential IPO on the Horizon
De-Risking and Strategic Alliances: The 25% Stake Sale
Fueling the Future: Fleet Modernization and Growth
Conclusion: Charting a Course for Public Skies
FAQ
Photo Credit: calgaryplanes
Airlines Strategy
American Airlines Ends Mileage Earning on Basic Economy Fares
American Airlines stops awarding miles and Loyalty Points on Basic Economy fares purchased after December 17, 2025, aligning with Delta’s policy.
This article summarizes reporting by NBC DFW.
American Airlines has quietly updated its loyalty program terms to remove all mileage and status earning capabilities from its lowest-priced tickets. As of this week, travelers purchasing Basic Economy fares will no longer accrue AAdvantage® miles or Loyalty Points, marking a significant shift in the carrier’s approach to budget-conscious flyers.
According to reporting by NBC DFW, the policy change took effect for tickets purchased on or after December 17, 2025. The move aligns American Airlines more closely with Delta Air Lines, which also restricts earnings on its most restrictive fares, effectively creating a “pay-to-play” environment for travelers seeking elite status.
The update was not accompanied by a formal press release but appeared as a revision to the “Basic Economy” section of the airline’s official website. This “stealth” implementation has drawn attention from frequent flyers and industry analysts who view it as a strategy to further segment customers based on their willingness to pay for premium attributes.
Under the previous structure, Basic Economy passengers earned 2 miles and Loyalty Points per dollar spent, a rate that was already reduced by 60% compared to standard Main Cabin fares. The new policy eliminates this earning potential entirely.
The revised terms apply specifically to the date of purchase rather than the date of travel. According to the updated terms on AA.com:
While the ability to earn status has been removed, American Airlines has retained certain amenities that distinguish its Basic Economy product from ultra-low-cost carriers. Passengers traveling on these fares are still permitted one free carry-on bag and one personal item. Additionally, standard in-flight perks such as complimentary snacks, soft drinks, and entertainment remain included.
Travelers who already hold elite status will continue to receive their applicable benefits, such as priority boarding and upgrades, when flying Basic Economy, even though the flight itself will not contribute to retaining that status for the following year.
This policy update places American Airlines in direct alignment with Delta Air Lines regarding loyalty earnings on basic fares, while widening the gap with other competitors. Delta Air Lines currently awards zero miles or status credit for Basic Economy tickets. By matching this restriction, American has effectively standardized the “no-earn” model among two of the “Big Three” legacy carriers.
United Airlines takes a different approach. United allows Basic Economy passengers to earn Premier Qualifying Points (revenue-based credit) but does not award Premier Qualifying Flights (segment counts). However, United is significantly more restrictive regarding baggage, prohibiting full-sized carry-on bags for non-elite Basic Economy passengers on domestic routes.
In contrast, carriers like Southwest, Alaska Airlines, and JetBlue continue to offer loyalty incentives on their lowest fares, though often at reduced rates compared to standard tickets.
We view this move as a calculated effort by American Airlines to force a clearer choice upon the consumer: pay a premium for the possibility of status, or accept a purely transactional relationship with the airline.
By removing the trickle of Loyalty Points previously available on Basic Economy, American is signaling that its elite ecosystem is reserved exclusively for higher-yield customers. For a traveler spending $100 on a ticket, the loss of ~200 redeemable miles is negligible in terms of redemption value. However, the inability to earn Loyalty Points is a major blow to “status chasers” who rely on segment volume and cheap fares to reach tiers like AAdvantage Gold or Platinum.
Furthermore, the retention of the free carry-on bag suggests that American is wary of ceding too much ground to Spirit and Frontier. While they are willing to cut loyalty costs, they appear unwilling to adopt United’s strict baggage ban, likely to avoid alienating the general leisure traveler who prioritizes luggage space over frequent flyer miles.
If I bought my ticket last week but fly next month, do I earn miles? Does this affect Main Cabin tickets? Can I still bring a carry-on bag?
American Airlines Eliminates Mileage Earning on Basic Economy Fares
Details of the New Earning Policy
Key Changes and Effective Dates
Remaining Benefits
Industry Context: The Race to the Bottom?
AirPro News Analysis
Frequently Asked Questions
Yes. If your ticket was purchased before December 17, 2025, you will earn miles and points under the old policy (2 per dollar).
No. Standard Main Cabin fares and higher continue to earn miles and Loyalty Points at the standard rates (starting at 5 per dollar for general members).
Yes. American Airlines has not changed its baggage policy for Basic Economy. You are allowed one free carry-on bag and one personal item.
Sources
Photo Credit: American Airlines
Airlines Strategy
Kenya Airways Plans Secondary Hub in Accra with Project Kifaru
Kenya Airways advances plans for a secondary hub at Accra’s Kotoka Airport, leveraging partnerships and regional aircraft to boost intra-African connectivity.
This article summarizes reporting by AFRAA and official statements from Kenya Airways.
Kenya Airways (KQ) is moving forward with strategic plans to establish a secondary operational hub at Kotoka International Airport (ACC) in Accra, Ghana. According to reporting by the African Airlines Association (AFRAA) and recent company statements, this initiative represents a critical pillar of “Project Kifaru,” the airlines‘s three-year recovery and growth roadmap.
The proposed expansion aims to deepen intra-African connectivity by positioning Accra as a pivotal node for West African operations. Rather than launching a wholly-owned subsidiary, a model that requires heavy capital expenditure, Kenya Airways intends to utilize a partnership-driven approach, leveraging existing relationships with regional carriers to feed long-haul networks.
While the Kenyan government formally requested permission for the hub in May 2025, Kenya Airways CEO Allan Kilavuka confirmed in December 2025 that the plan remains under active study. A final decision on the full execution of the project is expected in 2026.
The core of the Accra strategy involves basing aircraft directly in West Africa to serve high-demand regional routes. According to details emerging from the planning phase, Kenya Airways intends to deploy three Embraer E190-E1 aircraft to Kotoka International Airport. These aircraft will facilitate regional connections, feeding passengers into the carrier’s long-haul network and supporting the logistics needs of the region.
This operational shift marks a departure from the traditional “hub-and-spoke” model centered exclusively on Nairobi. By establishing a presence in Ghana, KQ aims to capture traffic in a market currently dominated by competitors such as Ethiopian Airlines (via its ASKY partner in Lomé) and Air Côte d’Ivoire.
A key component of this strategy is the airline’s collaboration with Ghana-based Africa World Airlines (AWA). Kenya Airways signed a codeshare agreement with AWA in May 2022. This partnership allows KQ to connect passengers from its Nairobi-Accra service to AWA’s domestic and regional network, covering destinations like Kumasi, Takoradi, Lagos, and Abuja.
Industry observers note that this “capital-light” model reduces the financial risks associated with starting a new airline from scratch. Instead of competing directly on every thin route, KQ can rely on AWA to provide feed traffic while focusing its own metal on key trunk routes. The push for a West African hub comes as Kenya Airways navigates a complex financial recovery. The airline reported a significant milestone in the 2024 full financial year, posting an operating profit of Ksh 10.5 billion and a net profit of Ksh 5.4 billion, its first profit in 11 years. This resurgence provided the initial confidence to pursue the growth phase of Project Kifaru.
However, the first half of 2025 presented renewed challenges. The airline reported a Ksh 12.2 billion loss for the period, attributed largely to currency volatility and the grounding of its Boeing 787 fleet due to global spare parts shortages. These financial realities underscore the necessity of the proposed low-capital expansion model in Accra.
The strategy focuses on collaboration with existing African carriers rather than creating a new airline from scratch.
, Summary of Kenya Airways’ strategic approach
The viability of the Accra hub relies heavily on the Single African Air Transport Market (SAATM) and “Fifth Freedom” rights, which allow an airline to fly between two foreign countries. West Africa has been a leader in implementing these protocols, making Accra a legally feasible location for a secondary hub.
Furthermore, the African Continental Free Trade Area (AfCFTA) secretariat is headquartered in Accra. Kenya Airways is positioning itself to support the trade bloc by facilitating the movement of people and cargo between East and West Africa. The airline has already introduced Boeing 737-800 freighters to serve key destinations including Lagos, Dakar, Freetown, and Monrovia.
The decision to delay a final “go/no-go” confirmation until 2026 suggests a prudent approach by Kenya Airways management. While the West African market is lucrative, it is also saturated with aggressive competitors like Air Peace and the well-entrenched ASKY/Ethiopian Airlines alliance. By opting for a partnership model with Africa World Airlines rather than a full subsidiary, KQ avoids the “cash burn” trap that led to the collapse of previous pan-African airline ventures. If successful, this could serve as a blueprint for other mid-sized African carriers looking to expand without overleveraging their balance sheets.
What aircraft will be based in Accra? When will the hub become operational? How does this affect the Nairobi hub?
Kenya Airways Advances Plans for Secondary Hub in Accra Under ‘Project Kifaru’
Operational Strategy: The ‘Mini-Hub’ Model
Partnership with Africa World Airlines
Financial Context and ‘Project Kifaru’
Regulatory Landscape and Competition
AirPro News Analysis
Frequently Asked Questions
Current plans indicate that Kenya Airways intends to base three Embraer E190-E1 aircraft at Kotoka International Airport.
While planning is underway and government requests have been filed, a final decision on full execution is not expected until 2026.
Nairobi (Jomo Kenyatta International Airport) remains the primary hub. The Accra facility is designed as a secondary node to improve regional connectivity and feed traffic back into the global network.
Sources
Photo Credit: Embraer – E190
Airlines Strategy
TUI Airline Launches Navitaire Stratos for Modern Airline Retailing
TUI Airline adopts Navitaire Stratos, a cloud-native platform with AI-driven offer and order retailing to enhance booking and operational capabilities.
This article is based on an official press release from Amadeus.
In a significant move toward modernizing digital travel infrastructure, TUI Airline has been announced as the launch customer for Navitaire Stratos, a next-generation airline retailing platform. According to an official press release from Amadeus, the parent company of Navitaire, this partnership marks a transition from the legacy “New Skies” system to a cloud-native, AI-driven environment designed to facilitate “Offer and Order” management.
The collaboration aims to overhaul TUI’s digital capabilities, moving the leisure carrier away from rigid, traditional ticketing systems toward a flexible, e-commerce model comparable to major online retailers. By adopting Stratos, TUI Airline intends to enhance its ability to sell personalized travel bundles, manage complex itineraries, and integrate third-party ancillaries directly into the booking flow.
The aviation industry is currently undergoing a technological paradigm shift known as “Offer and Order” management (OOMS). Traditionally, airlines have relied on Passenger Service Systems (PSS) that separate schedules, fares, and ticketing into distinct, often disjointed, databases. This legacy architecture can make modifying bookings, such as adding a hotel room or changing a flight leg, technically complex.
Navitaire Stratos is designed to replace these silos with a unified system. According to the announcement, the platform utilizes open architecture and artificial intelligence to generate dynamic offers. This allows the airline to present a single, comprehensive “order” that includes flights, accommodation, and activities, rather than a collection of disparate tickets and reservation numbers.
One of the standout features of the Stratos platform, as highlighted in the release, is the introduction of shopping cart functionality. While standard in general e-commerce, the ability to add items to a cart, save the session, and return later to complete the purchase is relatively rare in airline booking engines due to the volatility of ticket pricing and inventory.
TUI Airline plans to leverage this feature to reduce friction for leisure travelers. The new system will allow customers to build complex holiday packages over time, saving their progress as they coordinate with family members or travel companions. The platform is also designed to support intelligent upselling, offering relevant add-ons such as baggage upgrades, meals, or car rentals based on specific customer data.
TUI Airline, which operates a fleet of over 130 aircraft including Boeing 737 MAX and 787 Dreamliner jets, has maintained a partnership with Navitaire for over two decades. This new agreement represents a deepening of that relationship rather than a new vendor selection. The transition to Stratos is positioned as a critical step in TUI’s digital transformation strategy. Peter Glade, Chief Commercial Officer at TUI Airline, emphasized the importance of this technological upgrade in the company’s official statement:
“We are on a journey to build the most modern airline commercial set up in the industry. Navitaire Stratos will be a cornerstone of this transformation… It will elevate our retailing capabilities with intelligent recommendations, dynamic offers, and a shopping cart that makes it easy for customers to convert their selections into an order or save them for later.”
Amadeus views this launch as a benchmark for the broader low-cost and hybrid carrier market. Cyril Tetaz, Executive Vice President of Airline Solutions at Amadeus, noted the long-term implications of the project:
“As the group transitions from our New Skies solution, close collaboration on a shared long-term roadmap will ensure business continuity, while helping shape the next-generation Offer and Order solution of reference for low-cost and hybrid carriers.”
While legacy network carriers often focus on corporate contracts and frequency, leisure carriers like TUI are uniquely positioned to benefit from the “Offer and Order” revolution. Leisure travel is inherently more complex than point-to-point business travel; it often involves multiple passengers, heavy baggage requirements, and the need for ground transportation or accommodation.
By moving to a cloud-native platform like Stratos, TUI is effectively acknowledging that it is no longer just a transportation provider, but a digital travel retailer. The ability to “save for later” is particularly potent for the leisure market, where the booking window is longer and purchase decisions are often collaborative. If TUI can successfully implement a “shopping cart” experience that mimics Amazon or Uber, they may significantly increase their “share of wallet” by capturing ancillary spend that might otherwise go to third-party aggregators.
Beyond retailing, the shift to cloud-native infrastructure offers operational benefits. Legacy PSS platforms are notoriously difficult to update and maintain. A cloud-based system allows for faster deployment of new features and greater resilience during peak traffic periods, critical factors for a holiday airline that experiences extreme seasonal demand spikes.
TUI Airline Selected as Launch Customer for Navitaire Stratos Retailing Platform
The Shift to “Offer and Order” Management
The “Amazon-ification” of Booking
Strategic Partnership and Executive Commentary
AirPro News Analysis
Why Leisure Carriers Lead the Retail Revolution
Operational Resilience
Sources
Photo Credit: Amadeus
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