Strengthening Influence in the North American Aviation Market
Korean Air is expanding its global influence by acquiring a stake in Canada's second-largest airline.
On the morning of May 9, Korean Air announced that its board of directors had resolved to acquire a 10% stake in WestJet, a Canadian airline, for approximately $220 million. Delta Air Lines will also acquire a 15% stake for $330 million. Among Delta's shares, 2.3% will carry the right to be sold or transferred to Air France-KLM.
Korean Air's decision to acquire a stake in WestJet is aimed at strengthening its competitiveness in the Canadian market. Canada, with the second-largest land area in the world, is highly dependent on air transportation. In addition, it is the seventh-largest aviation market in the world, valued at $33 billion in 2024. Since 2019, the market has recorded double-digit growth rates, making it the second fastest-growing market after India.
Through this acquisition of WestJet shares, Korean Air aims to establish a strong partnership within the Canadian aviation market and is considering expanding into both North America and Central and South America. In particular, by expanding codeshare operations between Korean Air and WestJet, the company plans to increase the number of available schedules connecting Korea and North America, and to discover new destinations by utilizing WestJet's network in Central and South America.
Korean Air is also making smooth progress in its preparations for integration with Asiana Airlines. A Korean Air representative stated, "Through various collaborations in the global aviation market, we plan to expand customer choice and convenience, thereby solidifying our position as a global airline."
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