Delta has reached an agreement to purchase a 15% stake in Canadian airline WestJet, a codeshare and loyalty program partner.
Upon closing, Delta plans to sell a 2.3% WestJet stake to Air France-KLM, a transatlantic joint venture partner and fellow SkyTeam alliance member. Once both transactions are completed, Delta's investment in WestJet will amount to $280 million and Air France-KLM's $50 million.
In addition, Korean Air, another Delta joint venture partner and fellow SkyTeam member, has reached an agreement to purchase 10% of WestJet, paying $220 million.
Onex Group, the Canadian investment group that is WestJet's primary owner, will maintain a majority stake in the airline.
Delta CEO Ed Bastian said, "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 travelers in the United States and Canada." Delta did not announce any specific new benefits that would come with the investment.
Delta and WestJet have been partners since 2011. Korean Air has partnered with WestJet since 2012.
The deal's closing will be subject to regulatory approval.
Delta already holds stakes in international partners Korean Air, Air France-KLM, Latam, Aeromexico, Virgin Atlantic and China Eastern.