WestJet Sells Minority Stake to Foreign Airlines, Continues Global Expansion

Calgary-based WestJet has announced the sale of a quarter of its business to three international carriers for US$550 million, marking a significant step in the company’s global expansion. The private equity firm Onex Corp. , which remains WestJet’s majority owner, has finalized the sale of minority stakes to Delta Air Lines, Korean Air, and Air France-KLM.

Delta, based in the United States, now holds a 12. 7% share in WestJet, while Korean Air and Air France-KLM own 10% and 2. 3%, respectively. This means that one in every four shares of WestJet is now foreign-owned. The sale allows Onex to recover the remainder of its 2019 equity investment in WestJet, which was worth $5 billion at the time and remains one of the largest private equity acquisitions in aviation history.

The original sale proved challenging due to the COVID-19 pandemic, which brought the global aviation industry to a halt just three months after the deal closed. Despite this, WestJet managed to survive through cost-cutting measures and a reduced flight schedule, gradually rebuilding as travel resumed. In September, WestJet placed the largest aircraft order in Canadian history, with deliveries scheduled through 2034.

Aviation analyst John Gradek of McGill University sees the new partnership as a natural evolution of growth for WestJet as it expands beyond its regional roots. He believes that staying local would lead to the airline’s demise, while going international is necessary for survival. Founded in 1996 with three planes serving five destinations, WestJet has grown into one of Canada’s largest airlines, with 200 aircraft flying to 100 cities. It is a key symbol of Calgary’s business community and a major employer in Western Canada.

The new ownership structure is expected to strengthen WestJet’s position in the international market by improving coordination with its global partners. This includes greater flight connectivity between Canada and the United States, as well as more affordable fares for Canadians traveling to Southeast Asia. The ownership stake could also deepen ties within overlapping international alliances, streamlining connections for passengers heading to Europe.

However, some critics warn that lifting the 49% cap on foreign ownership of Canadian airlines, as recommended by a recent report from the Competition Bureau, could leave smaller and remote communities without air service as foreign-owned airlines prioritize major routes. For now, WestJet’s new ownership mix gives it both cash and stronger international ties as it prepares for another decade of fleet growth and overseas expansion.