Delta Air Lines buys 4.3% interest in Korean Air’s owner Hanjin Kal
Category: #business  By Mateen Dalal  Date: 2019-06-22
  • share
  • Twitter
  • Facebook
  • LinkedIn

Delta Air Lines buys 4.3% interest in Korean Air’s owner Hanjin Kal

The agreement is strategically important for Delta to expand outside the U.S. market

Delta, a major American Airline, recently announced that it has acquired a 4.3% stake in Hanjin Kal Corp., the parent company of Korean Air Lines Co Ltd., which is the largest airline in South Korea. The U.S. airline has an option to raise its stake up to 10% over the time after it receives regulatory approval.

Apparently, discussions regarding the ownership have been going on with the members of the family at Korean Air Lines and Hanjin Kal, its majorly owned company, following its founder’s death in April which  raised several questions about the airline and its parent company’s future.

Sources said that Walter Cho is leading Hanjin Kal following the death of his father and the company’s former chairman, Cho Yang-ho. However, regulators have not been informed about the officials who are expected to lead the group yet. The firm supposedly has diversified businesses like logistics, budget airlines and hotels.

Reportedly, the late patriarch passed away at 70 owing to chronic illness, weeks after the decision to end his 27-year term on the airline’s board was taken by the shareholders. The stakes in Hanji Kal are currently owned by Choi’s widow, two daughters and a son.

According to reliable sources, a local activist fund had increased its stake in Hanjin Kal to around 16% which attracted the ownership structure of the group to wider attention. 29% of Hanjin is owned by the Cho family and its academic foundations that also include the 17.8% interest of late Mr. Cho.

Citing sources, both the Delta and Korean Air are part of the SkyTeam Alliance and they run a joint venture operating flights between Asia and the United States. Apparently, the agreement plays an important part in Delta’s strategic expansion outside the U.S. market through investment in stakes in other carriers and in emerging markets particularly.

Source Credit- https://uk.reuters.com/article/delta-stake/corrected-update-1-delta-air-lines-acquires-stake-in-korean-airs-parent-hanjin-kal-idUKL4N23R3BP

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal    

Mateen Dalal

Mateen has completed his Bachelor’s degree in electronics and telecommunication engineering, post which he lent his proficiency to the industry, working as a quality and test engineer. Drawn intricately toward the field of content creation however, Mateen soon switc...

Read More

More News By Mateen Dalal

Stocks of luxury fashion houses raise in response to China’s reopening
Stocks of luxury fashion houses raise in response to China’s reopening
By Mateen Dalal

Luxury fashion houses dependent on Chinese customers reportedly saw a hike in stocks as China reopens, however, those clients may not necessarily be purchasing the goods elsewhere. In the past, wealthy Chinese customers would frequently buy person...

Microsoft investigates Teams and Outlook outage that left users disrupted
Microsoft investigates Teams and Outlook outage that left users disrupted
By Mateen Dalal

Microsoft, the U.S.-based technology frontrunner, reportedly investigating an outage that prevented thousands of customers from accessing services like Teams and Outlook. Apparently, the tech giant did not disclose the number of users that were im...

DeHaat secures $60 million in funding, tops $700 million valuation
DeHaat secures $60 million in funding, tops $700 million valuation
By Mateen Dalal

Indian agritech firm DeHaat has reportedly raised $60 million in a new funding round as it looks forward to strengthening its footprint in the country and touching break-even profitability in two years. For the unversed, the startup provides a range ...