Delta Air Lines and Korean Air will pay $ 550 million combined in exchange for participations Friday, in Canada in Canada on Friday, the three companies announced a joint declaration.
Delta, whose headquarters are in Georgia, will invest $ 330 million to acquire a 15% stake in the carrier based in Calgary, while Korean Air will hire $ 220 million to acquire a 10% stake. The partnership will increase connectivity between the existing international roads of each airline, which are mainly targeted throughout North America, Europe and Asia.
Walter Cho, Chairman and CEO of Korean Air and Hanjin Group, said in a press release that partnership “would create long-term value for customers thanks to a greater choice and convenience”.
Ed Bastian, CEO of Delta, added that the investment “guarantees that we remain focused on the supply of a global network and a world class customer experience for travelers in the United States and Canada”.
The company, which has reconceptualized the previous partnership plans between Westjet and Delta which failed in 2020, arrives at an uncertain moment for travel between Canada and the United States – and, for Americans, international trips in general.
Business Insider previously pointed out that many Canadians choose not to go to the United States angry with Trump’s prices to their country and its repeated suggestion to make the north of the United States the 51st state.
Longwoods International, a market research firm, noted that in an outcome in April of 1,000 Canadian travelers that 36% of respondents said they had planned to go to the United States in the next 12 months, but decided to cancel their plans, while 60% are less likely to visit the United States in the next year for political reasons.
In March, Westjet Airlines Vice-president Alex Cruz told CNBC that Canadian travelers opt for Central America in the United States, and that “there was clearly a reaction” to Trump’s pricing policies.
American travelers visiting other countries like Canada also told BI that they had met increased hostility and that the negative perceptions of Trump policies had been returned to the Americans in general.
Delta and Westjet previously explored a joint venture aimed at better coordination hours for flight transits, but the initiative was put aside in 2020 after the American regulators demanded that Westjet renounce takeoff and landing slots at New York Laguardia airport as an approval condition.
Westjet and Korean Air did not immediately respond to requests for comments. Delta Air Lines referred to BI to the original press release announcing the investment.
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