Delta Air Lines and Korean Air will pay a joint $ 550 million in exchange for stakes In Canada's Westjet, the three companies announced in a joint statement Friday.
Delta, headquarter in Georgia, invests $ 330 million to get a 15% stake in Calgary -based carrier, while Korean air will make $ 220 million to get a 10% stake. The collaboration will increase the connection between existing international plane routes, focusing especially throughout North America, Europe, and Asia.
Walter Cho, chairman and CEO of the Korean Air and Hanjin Group, told a press release that the cooperation would “create a long -term value for customers through greater choice and convenience.”
Ed Bastian, CEO of Delta, added that the investment is “ensuring that we remain committed to providing a global world network and customer experience for travelers in the United States and Canada.”
The adventure, which has been conceptualized earlier collaboration plans between Westjet and Delta that fell in 2020, came at an uncertain moment for travel between Canada and the US – and, for Americans, international journey in general.
Business Insider has previously reported that many of the Canadians have chosen not to travel to the US because of anger over Trump's tariffs in their country and his repeated suggestions to make the northern US neighbor in the 51st state.
Longwoods International, a market research consulting, found in a survivor in April of 1,000 Canadian travelers that 36% of respondents said they planned to travel to the US in the next 12 months but decided to cancel their plans, while 60% were more likely to visit the US next year due to political reasons.
In March, Westjet Airlines Vice Chairman Alex Cruz told CNBC that Canada travelers were selected in Central America in the US, and that “clearly reacted” to Trump's tariff policies.
American travelers visiting other countries such as Canada also previously told BI that they encountered an increasing hostility, and that the negative understanding of Trump's policies brought Americans generally.
Delta and Westjet had previously explored a joint adventure aimed at better coordinating schedules for flight transfers, but the initiative was recorded in 2020 after US regulators asked Westjet to return some takeoff and landing slots to New York's Laguardia Airport as a condition for approvement.
Westjet and Korean air did not immediately respond to requests for comment. Delta Air Lines identified BI in the original press release that expresses investment.
