Latest news with #HanjinKAL
Korea Herald
12-06-2025
- Business
- Korea Herald
Delta resumes Korea flights with new Incheon-Salt Lake City route
Delta Air Lines officially launched a new direct route between Incheon International Airport and US' Salt Lake City International Airport on Thursday, marking its return to the Korean market after a six-year hiatus, just ahead of the peak summer travel season. The airline also expressed its intention to further strengthen its partnership with Korean Air, its joint venture partner since 2018. 'This year marks Delta's 100th anniversary, and introducing a new route to Korea during this milestone makes the occasion even more special,' said Jeff Moomaw, vice president of Asia Pacific for Delta Air Lines, at a press conference held in central Seoul on Thursday. 'Whether traveling for business or leisure, we've worked diligently to offer a flight experience that meets the expectations of Korean passengers. From Salt Lake City, travelers can conveniently connect to 35 destinations across the US, with a 55-minute international-to-domestic transfer time on par with that of Incheon Airport.' Through its joint venture with Korean Air, Delta now connects Seoul to 14 US destinations. The expansion further solidifies Delta's position as the largest long-haul foreign carrier operating at Incheon Airport. 'Our partnership with Korean Air has grown significantly over the past eight years, and we now consider ourselves the leading joint venture across the Pacific,' said Moomaw. 'Together, we've made joint investments in digital solutions and customer experience improvements to deliver top-tier service.' For example, travelers can use either the Korean Air app or the Fly Delta app to book and check in for flights operated by both airlines, the vice president explained. Regarding the recent controversy over a potential management dispute triggered by Hoban Group's acquisition of shares in Hanjin KAL, the parent company of Korean Air, Delta Air Lines downplayed concerns, stating it views the move as 'pure investment.' 'I have good trust in Walter Cho (Korean Air Chairman). We view Hoban Construction's recent increase in its stake in Hanjin KAL as a simple investment,' said Moomaw, adding that making such investments is a very natural business activity. As of last month, Hoban Construction had acquired an 18.46 percent stake in Hanjin KAL, becoming its second-largest shareholder. While Hoban has stated the purchase was for investment purposes only, the market has speculated about a possible management rights dispute with Hanjin Group. In response, Hanjin Group transferred treasury shares of Hanjin KAL to its employee welfare fund, increasing Cho's stake to 20.79 percent, widening the gap with Hoban to 2.3 percentage points. Delta Air Lines currently holds a 14.9 percent stake in Hanjin KAL. Meanwhile, Moomaw expressed strong support of the recent Korean Air-Asiana Airlines merger. 'We are very excited about the acquisition, since our priority remains aligning the right flights with the right markets to provide the best possible service to our passengers. We are confident that our close relationship with Korean Air will help us advance that goal even further," he added.
Korea Herald
14-05-2025
- Business
- Korea Herald
Hoban tightens grip on Hanjin KAL, reigniting talk of power struggle
Hanjin shares surge nearly 30% amid speculation of looming proxy fight Korean construction giant Hoban Group has raised its stake in Hanjin KAL, the holding company of Korean Air parent Hanjin Group, to over 18 percent, stoking speculation of a looming power struggle as it closes in on the largest shareholder bloc led by the group's chairman. In a regulatory filing on Monday, Hoban Construction, the group's construction arm, disclosed that its stake in Hanjin KAL had climbed to 18.46 percent from 17.44 percent. The additional shares were acquired over the past year through Hoban affiliates, complementing Hoban Construction's existing 11.5 percent stake. Hoban Hotel & Resort purchased 0.96 percent of Hanjin KAL, bringing its holding to 6.81 percent, while Hoban Co. lifted its stake to 0.15 percent. The increase puts Hoban just shy of the 20.13 percent held by Hanjin Group Chair and CEO Walter Cho and his allies, including his family members. Cho's individual stake amounts to 5.78 percent. Hoban became the airline group's second-largest shareholder in 2022 after acquiring a stake from private equity fund KCGI. In 2023, it added another 5.85 percent by purchasing shares from Korean top bulk carrier Pan Ocean. Despite Hoban's insistence that the acquisition is purely a financial investment, market insiders have taken note of signs pointing to a looming power play in aviation. 'Hanjin KAL may have friendly backing, but Hoban's expanding presence is hard to ignore,' said one industry official. In 2015, Hoban made an unsuccessful bid to acquire Kumho Industrial, then the parent company of Asiana Airlines, after taking a 5.16 percent stake the previous year. At the time, it dismissed takeover concerns, framing the move as a simple investment. A potential sign of discord surfaced at Hanjin KAL's shareholder meeting in March, when Hoban Construction voted against a proposal to raise the cap on directors' compensation from 9 billion won ($6.4 million) to 12 billion won. The company said it intends to speak up as a major shareholder to ensure that management decisions are made appropriately. With Hoban trailing closely behind, however, Chair Cho appears to have broader support. US-based Delta Air Lines holds 14.9 percent and plays a key role as Korean Air's joint venture partner. Earlier this month, the two carriers deepened their alliance by acquiring stakes in WestJet, Canada's second-largest airline. Korean Air took 10 percent, while Delta secured 15 percent. State-run Korea Development Bank, which owns 10.58 percent, is also seen as friendly to Cho's side, having backed Cho in the Korean Air-Asiana Airlines merger. In 2020, KDB purchased approximately 500 billion won worth of Hanjin KAL common shares through a third-party allotment and acquired 300 billion won in exchangeable bonds backed by Korean Air stock. The prospect of a power struggle jolted the market into swift motion. Shares of Hanjin KAL soared, hitting the daily upper limit for two consecutive days. The stock surged by 29.94 percent, reaching 150,600 won on Wednesday and extending a sharp rally from Tuesday's close of 115,900 won. Its preferred shares also reached the daily ceiling.
