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Delta Air Lines takes bigger stake in Korean Air parent
February 28th 2020
United States-based Delta Air Lines has boosted its ownership stake in Korean Air's parent company Hanjin KAL to 11%. Read More »
Hanjin KAL said this week Delta had lifted its stake to 11%, from a previous holding of 9.21%.
Delta first invested in Hanjin KAL in August 2019, when it purchased a 5.13% equity in the company. The U.S. carrier then increased the investment when it purchased an additional 4.08% in September 2019.
The two carriers currently have a joint-venture partnership on trans-Pacific routes that was first established in May 2018. Also, both are members of the SkyTeam alliance.
The Korea Herald newspaper said this week's move by Delta Air Lines could be seen as a show of support for Hanjin Group chairman, Cho Won-tae, who also is KAL’s chief executive, ahead of a shareholders meeting on March 24.
Cho's sister, Cho Hyun-ah, is leading an anti-chairman coalition that includes shareholders, Korea Corporate Governance Improvement fund and construction company Bando, the newspaper said.
"Although the groups opposing and supporting Cho have been upping the ante before the March 24 shareholders meeting, experts say holding more shares of Hanjin KAL is meant to brace themselves for what happens after the meeting," The Korea Herald reported on February 24.
