Korean Air announced on the 9th that it will acquire a 10% equity stake in the Canadian airline WestJet.
On this day, the Korean Air board resolved to approve the acquisition of a 10% equity stake in WestJet. The acquisition amount is $220 million.
Korean Air explained that the acquisition of the equity stake in WestJet would establish a strong partnership in the Canadian airline market and expand its presence in North America and Latin America. The airline plans to enhance its schedule consolidation between Korea and North America through expanded codesharing. Canada has the second-largest land area in the world, leading to a high dependence on air traffic. As of last year, Canada has the world's seventh-largest airline market, valued at $33 billion.
Delta Air Lines of the United States has also decided to acquire a 15% equity stake in WestJet for $330 million. Among its holdings, 2.3% of Delta's equity is subject to rights for sale or transfer to Air France-KLM.
Korean Air noted that it plans to solidify its position as a global airline by expanding customer choices and convenience through various collaborations in the global aviation market.