WestJet Airlines Ltd. to create a transborder joint venture with Delta Air Lines

Lead Office

Toronto

On July 19, 2018, WestJet Airlines Ltd. ("WestJet") and Delta Air Lines ("Delta") jointly announced that they had signed a definitive agreement to establish a metal neutral joint venture covering the Canada-U.S. transborder market. The agreement follows the signing of a memorandum of understanding between the parties in December 2017.

The joint venture will enhance transborder service and deepen the relationship between the two companies, allowing them to compete more effectively against other carriers. Per the terms of the joint venture, the airlines would share revenue, costs and profits. The planned joint venture is subject to board and regulatory approvals in both the U.S. and Canada.

WestJet, based in Calgary, is the second-largest air carrier in Canada.

Delta is a major American airline, headquartered in Atlanta, Georgia.

McCarthy Tétrault LLP is advising WestJet Airlines on competition matters with a team led by Jason Gudofsky that includes Debbie Salzberger and Jonathan Bitran.

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