Seoul, May 10 Korean Air Lines, South Korea's leading air carrier, said it will acquire a 10 percent stake in WestJet, Canada's second-largest airline, in a bid to strengthen its presence in the North American market.
The South Korean airline's board approved the US$220 million deal earlier in the day, the company said in a press release. Delta Air Lines, Korean Air's joint venture partner in the United States, will also purchase a 15 percent stake in WestJet for $330 million, reports Yonhap news agency.
Founded in 1994, WestJet operates a fleet of over 180 aircraft and serves more than 100 airports globally. Korean Air has maintained a codeshare partnership with WestJet since June 2012.
Korean Air emphasized that the equity investment is aimed at deepening the codeshare alliance and expanding connectivity in Canada and the broader North and Latin American markets.
The company noted that the stake acquisition does not entail a management takeover or a merger with WestJet.
Canada, the world's second-largest country by landmass, heavily relies on air transport and was ranked as the world's seventh-largest aviation market in 2023, valued at $33 billion. Since 2019, the market has posted double-digit growth, trailing only India in terms of expansion rate.
Korean Air said the deal will establish a strong partnership within the Canadian aviation market and help broaden its reach across the Americas.
Meanwhile, fuel surcharges for international flights operated by South Korean airlines have fallen to their lowest levels in almost three and a half year this month, according to industry data.
Fuel surcharges for international routes of industry leader, Korean Air Co., have been set between 10,500 won (US$7.36) and 76,500 won per one way this month, down from the 13,500-99,000 won range in April.
Asiana Airlines Inc. has lowered its fuel surcharge by as much as 12,500 won per flight for May. T'way Air Co. and other low-cost carriers have also lowered their fuel surcharges for the month.
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