SEOUL — Korean Air has taken a decisive step into the North American aviation market with the completion of its $217 million acquisition of an 11.02 percent stake in WestJet’s parent companies, Kestrel Topco and Kestrel Holdings. The move not only cements the South Korean carrier’s presence in Canada’s $33 billion aviation sector but also adds its top executive, Walter Cho, to WestJet’s board of directors.
A Strategic Expansion Into Canada
The transaction follows a share purchase agreement signed earlier this year and underscores Korean Air’s growing ambitions beyond Asia. The investment, which translates to roughly a 10 percent ownership stake, positions Korean Air as a strategic partner to WestJet, Canada’s second-largest airline based in Calgary.
The deal is part of a broader push by Korean Air to expand its footprint in key international markets. By acquiring a significant minority stake in WestJet’s holding companies, Korean Air gains access to one of the most rapidly growing aviation markets in the world—ranked seventh globally in overall value.
With Cho’s appointment, the board now includes some of the industry’s most influential figures, such as Benjamin Smith, CEO of Air France-KLM, and Alex Cruz, former CEO of British Airways. Their collective experience signals an increasing alignment between major global carriers connected through the SkyTeam alliance, of which Korean Air is a founding member.
Strengthening Global Partnerships
Industry observers see the deal as a strategic maneuver designed to enhance Korean Air’s transpacific connectivity and deepen its partnerships across the SkyTeam network. Analysts note that closer collaboration with airlines like WestJet could improve operational efficiency and expand customer options for routes between Asia and North America.
The growing volume of travel and trade between South Korea and Canada makes this partnership especially timely. As Seoul continues to expand its role in international aviation, strategic investments such as this reinforce the nation’s status as a central hub for global air transport.
In a company statement, Korean Air said the investment aims to “strengthen its position within the rapidly growing Canadian aviation market,” which has posted double-digit growth since 2019. The partnership, according to the airline, is expected to “improve customer choice and route connectivity across the transpacific corridor.”
A Broader Vision for Growth
Korean Air’s engagement with WestJet coincides with its ongoing merger process with Asiana Airlines, a move that, once complete, would create one of the world’s ten largest carriers by fleet size and international capacity. The merger and the new Canadian partnership both highlight the airline’s commitment to global scale and competitiveness.
The company has repeatedly emphasized that partnerships and alliances form the backbone of its long-term growth strategy. By collaborating with key carriers in North America and Europe, Korean Air seeks to achieve greater operational synergy and strengthen its position in major global markets.
“The appointment of Walter Cho to WestJet’s board highlights Korean Air’s commitment to deepening strategic alliances beyond Asia,” the company noted. The statement reflects Korean Air’s broader ambition to move beyond regional dominance toward becoming a truly global aviation powerhouse.
Implications for the Industry
The addition of Cho to WestJet’s board offers both companies a unique opportunity to leverage each other’s strengths. WestJet gains access to Korean Air’s deep experience in transpacific operations and alliance management, while Korean Air benefits from a foothold in Canada’s thriving aviation industry.
Industry analysts believe that the collaboration could lead to enhanced route integration, joint marketing initiatives, and potential codeshare expansions across Asia-Pacific and North America. The investment also aligns with Korean Air’s partnerships with other SkyTeam members such as Delta Air Lines and Air France-KLM, strengthening the network’s collective competitiveness against rival alliances like oneworld and Star Alliance.
Outlook
With this $217 million investment, Korean Air is signaling that its growth strategy hinges on collaboration, connectivity, and innovation. As the global aviation landscape continues to recover and evolve post-pandemic, cross-continental partnerships are becoming a vital tool for airlines seeking both stability and expansion.
By joining forces with WestJet and reinforcing its global alliances, Korean Air is positioning itself for sustained influence across the Pacific and beyond—transforming from a dominant regional player into a central figure in the international aviation arena.
