Seoul: Korean Air Co. announced the completion of a US$217 million investment in WestJet's parent companies, Kestrel Topco Inc. and Kestrel Holdings Inc., to enhance its network and establish a stronger foothold in North America. This strategic move grants Korean Air a 10 percent equity stake in Canada's second-largest airline and was finalized this week after being initially agreed upon in May. The investment also includes participation from Delta Air Lines and Air France-KLM.
According to Yonhap News Agency, as part of the investment agreement, Hanjin Group Chairman Cho Won-tae has joined WestJet's board of directors. Cho's position on the board, along with his membership on the International Air Transport Association (IATA) board of governors since 2019, is anticipated to boost collaboration with global partners and offer additional advantages to travelers.
The investment underscores the significance of the Canadian aviation market, which is projected to be valued at US$33 billion in 2024. It is recognized as one of the top 10 markets worldwide, experiencing double-digit growth annually since 2019. Korean Air aims to continue forming global strategic partnerships and is currently working on its integration with Asiana Airlines Inc. to expand travel options and strengthen its standing as a leading international carrier.