SEOUL— Korean Air (KE) has finalized its acquisition of an 11.02 percent stake in Kestrel Topco and Kestrel Holdings, the parent companies of WestJet (WS), in a deal worth USD 217 million.
The acquisition follows a share purchase agreement signed earlier this year, signaling Korean Air’s growing interest in the Canadian aviation market, which is valued at nearly USD 33 billion, as reported by the Korean Herald and ranks seventh globally.
Korean Air Acquires 11% WestJet Stake
Following the acquisition, Walter Cho, Chair and CEO of Korean Air and its parent company Hanjin Group, has officially joined WestJet’s board of directors. His appointment places one of Asia’s most influential airline executives at the center of Canada’s second-largest airline, which is based in Calgary.
The transaction, which corresponds to roughly a 10 percent ownership stake, marks a major step in expanding the South Korean carrier’s footprint in North America.
Cho’s entry onto the board brings him alongside other major aviation leaders, including Benjamin Smith, CEO of Air France-KLM (AF/KL), and Alex Cruz, former CEO of British Airways (BA).
The inclusion of these figures indicates a strengthening of strategic partnerships among global carriers aligned through the SkyTeam alliance, of which Korean Air is a founding member.
Industry analysts suggest that this alliance-driven collaboration could enhance operational efficiency and expand transpacific connectivity, particularly between South Korea and Canada, amid growing demand for travel and trade between the two regions.
The completion of the deal also reinforces Seoul’s increasing role in global air transport connectivity through major strategic investments.
Market Expansion Plans
Korean Air said in an official statement that the investment aims to strengthen its position within the rapidly growing Canadian aviation market, which has seen double-digit growth since 2019.
The partnership is also expected to improve customer choice and route connectivity across the transpacific corridor.
In addition to its involvement with WestJet, Korean Air continues to pursue the merger with Asiana Airlines (OZ), a move that could further consolidate its global market presence.
Once complete, the merger will create one of the world’s top 10 airlines by fleet size and international capacity.
The carrier emphasized that global partnerships like this one are central to its long-term strategy, focusing on enhancing competitiveness through collaboration and operational synergy with key partners in North America and Europe.
Bottom Line
The appointment of Walter Cho to WestJet’s board highlights Korean Air’s commitment to deepening strategic alliances beyond Asia.
The $217 million investment positions the airline for stronger engagement in the North American market, while fostering shared growth with SkyTeam partners such as Delta Air Lines and Air France-KLM.
As Korean Air expands its influence through acquisitions and alliances, this move underscores its broader ambition to transform from a regional carrier into a truly global aviation powerhouse, driving growth through cooperation, connectivity, and innovation.
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