Seoul: Korean Air Lines Co., South Korea's leading air carrier, announced plans to acquire a 10 percent stake in WestJet, Canada's second-largest airline. This strategic move aims to bolster Korean Air's footprint in the North American market.
According to Yonhap News Agency, the South Korean airline's board approved the $220 million deal. Additionally, Delta Air Lines, Korean Air's joint venture partner in the United States, will acquire a 15 percent stake in WestJet for $330 million.
WestJet, founded in 1994, operates a fleet of over 180 aircraft and serves more than 100 airports globally. Korean Air has maintained a codeshare partnership with WestJet since June 2012. The equity investment is intended to deepen the codeshare alliance and expand connectivity in Canada and the broader North and Latin American markets.
The acquisition does not involve a management takeover or a merger with WestJet. Canada, ranked as the world's seventh-largest aviation market in 2023, relies heavily on air transport. Since 2019, the market has shown significant growth.
Korean Air believes the deal will establish a robust partnership within the Canadian aviation market and help broaden its reach across the Americas.