01—Abstract
Summary
Summary of the 8-K filed May 9, 2025. Cited figures are marked; the original filing is the authoritative source.
Delta Air Lines, Inc. (DAL) filed this Form 8-K under Item 7.01 (Regulation FD Disclosure) to announce its participation in a planned acquisition of minority equity stakes in WestJet, the Canadian airline.
Under agreements announced May 9, 2025, Delta and Korean Air would acquire independent equity stakes totaling 25% in WestJet for US$550 milliona from Onex Partners and its affiliated funds and co-investors (the Onex Group). Delta would invest US$330 million for a 15% stake, and Korean Air would invest US$220 million for a 10% stake. The Onex Group will continue to own and control WestJet.
The transaction is subject to certain regulatory approvals. Upon closing, Delta has the right and intent to sell and transfer a 2.3% stake in WestJet to its joint venture partner Air France-KLM in exchange for US$50 millionb. That separate transaction would remain subject to certain Air France-KLM approvals.
The filing describes the arrangement as building on the existing codeshare relationships Delta and Korean Air each have with WestJet, with the stated aim of expanding customer benefits and transpacific and transatlantic connectivity. The filing is signed by Daniel C.
Janki, Executive Vice President and Chief Financial Officer, and the press release is furnished as Exhibit 99.1. The 8-K itself contains no financial results, and the filing does not state the financial impact of the investment on Delta's earnings or balance sheet.
02—Key points
Key Highlights
- Delta will invest US$330 million to acquire a 15% minority stake in WestJet from Onex Partners and affiliates.
- Korean Air will invest US$220 million for a 10% stake, bringing the combined purchase to 25% for US$550 million.
- Delta has the right and intent to sell a 2.3% stake to Air France-KLM for US$50 million upon closing, subject to Air France-KLM approvals.
- The Onex Group will continue to own and control WestJet, which is based in Calgary, Alberta.
- The transaction is subject to certain regulatory approvals; Barclays is financial advisor to WestJet and Onex.
- The stated rationale is to align airline interests, expand customer benefits, and strengthen connectivity between Canada and North America, Europe, and Asia.
- Delta and WestJet have been partners since February 2011; Korean Air and WestJet have partnered since June 2012.
03—Questions
Frequently Asked Questions
How much is Delta paying for its WestJet stake?
Delta will invest US$330 million to acquire a 15% independent equity stake in WestJet, according to the filing and Exhibit 99.1.
Who is selling the WestJet shares?
The shares are being purchased from Onex Partners, the upper middle market private equity platform of Onex, along with its affiliated funds and co-investors, collectively the Onex Group.
Will Delta retain its full WestJet stake?
Not necessarily. Upon closing, Delta has the right and intent to sell and transfer a 2.3% stake in WestJet to Air France-KLM for US$50 million, a separate transaction that would remain subject to certain Air France-KLM approvals.
Who controls WestJet after the transaction?
The filing states that the Onex Group will continue to own and control WestJet. Delta and Korean Air would hold minority stakes totaling 25%.
What conditions must be met before the deal closes?
The agreement is subject to certain regulatory approvals. The Air France-KLM stake transfer is separately subject to certain Air France-KLM approvals.
04—Continue