After announcing a proposed sale of shares in the company earlier this year, WestJet and Onex have revealed that a deal has now closed that will see U.S. and Asian airlines picking up a considerable share.
Delta Air Lines, Korean Air and Air France-KLM all picked up shares, with Delta, based in the United States, picking up the most considerable number, amounting to a 15 per cent minority stake before transferring a portion of its shares. Korean Air comes out of the deal with a 10 per cent stake.
Onex Partners and WestJet announced the news earlier today.
“Upon closing, and as initially announced, Delta Air Lines sold and transferred a 2.3 per cent stake in WestJet to its Joint Venture partner Air France-KLM. As a result, the respective stakes of the partners stand as follows: Delta Air Lines: 12.7 per cent, Korean Air: 10 per cent, Air France-KLM: 2.3 per cent,” WestJet’s announcement states.
The Onyx Group retains the remaining shares, continuing to control and own WestJet with a 75 per cent stake.
“Our new partners are widely regarded as among the best-performing and most innovative airlines in the world,” said Tawfiq Popatia, Head of Onex Partners and Board Director at WestJet, in a statement.
“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. We look forward to building on this track record for all of WestJet’s investors, both new and continuing.”
WestJet’s original announcement said the deal was worth US$550 million, with the intention of strengthening its partnerships with the other airlines involved in the sale. It also touted benefits to Canadian travellers.
“Agreement will further align airlines’ interests, expand customer benefits and strengthen connectivity between Canada and North America, Europe and Asia and beyond,” the announcement stated.
“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,” said Delta CEO Ed Bastian in the original announcement.
“Together, Delta and our airline partners are connecting the world and transforming the future of travel,” he added.
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