Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Korean Air to reclaim ownership of in-flight catering, duty-free operations
Korean Air's B787-10 passenger jet / Courtesy of Korean Air
By Lee Min-hyung
Korean Air will buy back the remaining 80 percent stake in Korean Air C&D Service from Hahn & Company, in a strategic move to restore the airline’s full ownership of its in-flight catering and duty-free retail operations, the nation's flag carrier said Thursday.
The transaction valued at 750 billion ($506 million) was approved by Korean Air’s board of directors on the same day. After the agreement is finalized, Korean Air C&D Service will operate as a wholly owned subsidiary of the airline.
In 2020, Korean Air divested the 80 percent stake in its in-flight catering and duty-free business to the private equity firm to secure liquidity during the COVID-19 pandemic.
Korean Air aims to guarantee a stable supply of in-flight meals and strengthen overall service competitiveness by bringing the essential services back ahead of its upcoming integration with Asiana Airlines, the airline said.