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The price tag for a 25 per cent stake in Canada’s second-biggest carrier translates to roughly $766 million Canadian, putting WestJet’s total equity value at just under $3.1 billion.

In 2019, Onex bought 100 per cent of WestJet’s shares for $3.5 billion in a leveraged buyout that included roughly $1.2 billion of equity from Onex and its clients. Including the assumption of debt, the 2019 deal was worth a total of $5 billion.

John Gradek, head of the global aviation management program at McGill University, said the sale is a sign Onex could be looking to get out of the airline business entirely, despite company founder Gerry Schwartz’s long-time interest in the industry.

“Is this the first sign of Onex wanting out? I think it’s entirely possible,” said Gradek. “They’re taking some of the money now rather than waiting two years in an uncertain market.”

Barry Prentice, director of the University of Manitoba’s Transportation Institute, said Onex’s initial purchase of WestJet was a particularly bad piece of timing, and it may be looking to cut some of the debt it’s built up as a result.

“They really had bad timing. They bought in just before the COVID pandemic, and I’m certain they bled some capital as a result,” said Prentice.

With a global trade war underway and demand for U.S. travel slumping, the outlook for the next few years didn’t look particularly rosy either, Prentice added.

“They took on the airline at a very difficult time, and probably rang up a lot of debt,” said Prentice.

Still, Prentice said, the fact that other major airlines are taking on an ownership stake is a positive sign for WestJet’s longer-term stability.

“There’s a difference between just being part of an alliance and actually having some skin in the game,” said Prentice.

“Delta, Korean and Air France-KLM are among the world’s most prominent and best-managed airlines,” Tawfiq Popatia, co-head of Onex Partners, said in a statement.

“Onex is delighted to welcome them as shareholders in WestJet.”

WestJet and Delta have been partners since February 2011, and Korean Air and WestJet have partnered since June 2012.

“Investing in a world-class partner like WestJet aligns our interests and ensures that we remain focused on providing a world-class global network and customer experience for travellers in the United States and Canada,” Delta CEO Ed Bastian said.

Delta, Korean Air, KLM and Air France are members of the SkyTeam Airline Alliance. Air Canada is a member of the rival Star Alliance network.

“This strategic partnership will enhance our global network and create long-term value for customers through greater choice and convenience,” said Walter Cho, chairman and CEO of Korean Air and Hanjin Group.