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Korean Air is Delta’s second equity investment in Asia
June 21st 2019
Vote of confidence for new chairman Cho who is facing an activist shareholder. Read More »
This has been a high profile month for new Korean Air (KAL) chairman Walter Cho, who hosted the IATA AGM in Seoul, was voted onto IATA’s Board of Governors and initiated re-fleeting with an intent to order 30 787s.
This was capped by the June 20 announcement from joint venture partner, Delta Air Lines, that it had invested 4.3% into one of KAL’s major shareholders, Hanjin-KAL. Delta intends to increase the holding to 10% subject to regulatory approval.
Delta previously invested in China Eastern in anticipation of growing collaboration and the formation of a joint venture once there is U.S./China open skies. This time, Delta already has a partnership with KAL. Their joint venture was launched in May 2018.
Hanjin-KAL, loosely controlled by the Cho family, is facing a growing activist investor that says it does not want to take over KAL but wants to effect change. The Cho family faces a hefty inheritance tax from the estate of their father, who passed away in April.
Delta’s investment would solidify the Cho family’s grip during this generational change.
