Last week, Delta raised $450M on the debt market, sparking rumors about what the airline plans to do with the cash. The airline’s statement simply read the capital would be used for “general corporate purposes”.
There’s of course the purchase of 75-100 single-aisle jets from Boeing or Airbus that CEO Ed Bastian told Business Insider he hopes to settle by the end of the year. Delta’s board will meet this week. Could this be used for a deposit on new B737 Max or A320 neo jets?
Perhaps it’s for a stake in WestJet? The airlines announced last week that they will be expanding their partnership and enacting code-sharing, but maybe Delta is thinking about an equity stake as they’ve done with Aeromexico, GOL, or Virgin Atlantic?
Delta Air Lines and WestJet have agreed to deepen their existing partnership by entering into a comprehensive transborder joint venture that will increase travel choices between the U.S. and Canada.
The airlines have entered into a preliminary memorandum of understanding regarding their intention to deepen their existing partnership to form a commercial joint venture arrangement, which will offer customers access to an extensive transborder route network, world-class airline products, enhanced frequent flyer benefits, shared airport facilities and amenities, and a more seamless travel experience.
Highlights of the planned joint venture arrangement, subject to board approvals, execution of definitive agreements and applicable regulatory approvals, in the United States and Canada, include:
- Coordinated flight schedules for new nonstop flights to new destinations, expanded codesharing, and seamless and convenient connections on the airlines’ extensive networks in the U.S. and Canada.
- Enhanced frequent flyer benefits including reciprocal benefits for top-tier members of both airlines.
“With its strong brand and employee- and customer-centric culture, WestJet is the perfect partner for us in the U.S.-Canada transborder segment and together we will produce great results for our respective employees, customers and investors,” said Steve Sear, Delta’s President – International and Executive Vice President – Global Sales. “We look forward to applying Delta’s experience building successful joint venture partnerships to this important segment of transborder travel, the second-largest international segment for U.S. travel.”
More rumors here.