Airlines
Korean Air approves $53 million in emergency aid to Hanjin Shipping
September 23rd 2016
Hanjin Group has secured 100 billion won in emergency funding to pay for the offloading of cargo aboard Hanjin Shipping freighters stranded at countless North American, European and Asian ports since declaring bankruptcy on August 31. Read More »
Of the 100 billion won aid, 40 billion won will be a personal donation from Hanjin Group chairman, Cho Yang Ho, while the remaining 60 billion won will come from Korean Air, its largest shareholder, on the condition of putting the shipper’s Long Beach port terminal as collateral.
In an unusual move, South Korean president, Park Geun Hye, last week publicly criticized Hanjin Group for its improper management that led to the shipping unit’s demise. Park said Hanjin’s irresponsible and morally hazard ways could jeopardize the national economy writ large. Korean Air’s investment in Hanjin Shipping has become a huge liability and drag on the airline’s bottom line.
In more positive news for the company, its Busan-based aerospace division has produced its first sharklet for the A330neo, approximately a year and a half after Airbus named it the sole wingtip supplier for the re-engined A330 variant. The flag carrier’s technical division also manufactures winglets for the A320neo and the B737MAX series, in addition to cargo doors for the A350 program.
In other South Korean updates, the country’s second largest carrier, Asiana Airlines, has announced its withdrawal from a planned MRO facility project in Cheongju. Its reviews over the past 18 months concluded the project lacked feasibility.
