Latest news with #WalterCho
Korea Herald
2 days ago
- Business
- Korea Herald
Korean Air chief urges Seoul to shield aviation in US trade talks
Walter Cho, chair and CEO of Hanjin Group and Korean Air, has called on South Korea's new administration to prioritize safeguarding the aviation sector from tariffs in future trade negotiations with Washington. Speaking to Bloomberg TV on Monday during a visit to India for the 81st Annual General Meeting of the International Air Transport Association, where he serves on the Board of Directors, Cho underscored the role of the new administration in restoring stability amid tariff-induced concerns. He described the nation's six-month leadership vacuum as 'troubling, especially with the global economic situation.' 'Now with the new leadership coming up, I think that (the trade deal) should be the priority for the Korean government,' Cho stated, adding that, regardless of the election outcome, he expects predictability in the business climate. His remarks came just ahead of Tuesday's presidential election, in which Lee Jae-myung of the Democratic Party of Korea was elected Korea's 21st president. Cho's concerns over tariffs largely pertain to the weakening of the airline's selling power, given its extensive commercial ties with aerospace companies like Boeing and Airbus. 'We're a large buyer of aircraft, but we also sell a lot of airplane parts to Boeing and Airbus,' said Cho. 'Historically, aviation was not part of the tariffs. Now, it's going to cause a lot of confusion for businesses.' He also flagged ongoing risks related to trade tensions, noting that decreased cargo volumes from China to the US have posed challenges for the airline, despite its solid passenger business, with demand in premium cabins holding steady. 'But we're expecting some turmoil depending on the trade negotiations,' he noted, adding that trade deals will inevitably significantly impact the Korean economy, and by extension, passenger demand. Beyond the US market, Korean Air is looking to grow in other regions while maintaining its existing capacity in the US. According to Bloomberg, the airline is also preparing to be among the first to resume flight routes over Russia once the war in Ukraine ends.
Bloomberg
3 days ago
- Business
- Bloomberg
Korean Air Chairman Calls for Stability, Tariff Cuts
As South Korea heads to the polls to shape its future, Korean Air chairman Walter Cho says he expects the outcome to lead to stability and predictable governance, no matter who wins. Cho spoke exclusively to Bloomberg's Guy Johnson on the sidelines of IATA Annual General Meeting in New Delhi. (Source: Bloomberg)
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.
Yahoo
10-05-2025
- Business
- Yahoo
Delta and Korean Air buy stake in WestJet in $550 million deal amid shaky Canada-US travel
Delta Air Lines and Korean Air have invested $550 million in Canada's WestJet for equity stakes. The investment comes at an uncertain time for Canada-US travel due to Trump's policies. Delta and WestJet previously explored a joint venture, but it fell through in 2020. Delta Air Lines and Korean Air will pay a combined $550 million in exchange for stakes in Canada's WestJet, the three companies announced in a joint statement on Friday. Delta, headquartered in Georgia, will invest $330 million to acquire a 15% stake in the Calgary-based carrier, while Korean Air will commit $220 million to acquire a 10% stake. The partnership will increase connectivity between each airline's existing international routes, which are focused primarily throughout North America, Europe, and Asia. Walter Cho, Chairman and CEO of Korean Air and Hanjin Group, said in a press release that the partnership will "create long-term value for customers through greater choice and convenience." Ed Bastian, Delta's CEO, added that the investment "ensures that we remain focused on providing a world-class global network and customer experience for travelers in the United States and Canada." The venture, which reconceptualized prior partnership plans between WestJet and Delta that fell through in 2020, comes at an uncertain moment for travel between Canada and the US — and, for Americans, international travel in general. Business Insider previously reported that many Canadians are opting not to travel to the US out of anger over Trump's tariffs on their country and his repeated suggestion to make the US's northern neighbor the 51st state. Longwoods International, a market research consultancy, found in an April survery of 1,000 Canadian travelers that 36% of respondents said they'd planned to travel to the US in the next 12 months but decided to cancel their plans, while 60% they're less likely to visit the US in the next year due to political reasons. In March, WestJet Airlines vice chairman Alex Cruz told CNBC that Canadian travelers were opting for Central America over the US, and that "there's clearly been a reaction" toward Trump's tariff policies. American travelers visiting other countries like Canada have also previously told BI that they have encountered increased hostility, and that negative perceptions toward Trump's policies have carried over to Americans in general. Delta and WestJet previously explored a joint venture aimed at better coordinating schedules for flight transits, but the initiative was shelved in 2020 after US regulators demanded that WestJet relinquish some takeoff and landing slots at New York's LaGuardia Airport as a condition for approval. WestJet and Korean Air did not immediately respond to requests for comment. Delta Air Lines referred BI to the original press release announcing the investment. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
Delta and Korean Air buy stake in WestJet in $550 million deal amid shaky Canada-US travel
Delta Air Lines and Korean Air have invested $550 million in Canada's WestJet for equity stakes. The investment comes at an uncertain time for Canada-US travel due to Trump's policies. Delta and WestJet previously explored a joint venture, but it fell through in 2020. Delta Air Lines and Korean Air will pay a combined $550 million in exchange for stakes in Canada's WestJet, the three companies announced in a joint statement on Friday. Delta, headquartered in Georgia, will invest $330 million to acquire a 15% stake in the Calgary-based carrier, while Korean Air will commit $220 million to acquire a 10% stake. The partnership will increase connectivity between each airline's existing international routes, which are focused primarily throughout North America, Europe, and Asia. Walter Cho, Chairman and CEO of Korean Air and Hanjin Group, said in a press release that the partnership will "create long-term value for customers through greater choice and convenience." Ed Bastian, Delta's CEO, added that the investment "ensures that we remain focused on providing a world-class global network and customer experience for travelers in the United States and Canada." The venture, which reconceptualized prior partnership plans between WestJet and Delta that fell through in 2020, comes at an uncertain moment for travel between Canada and the US — and, for Americans, international travel in general. Business Insider previously reported that many Canadians are opting not to travel to the US out of anger over Trump's tariffs on their country and his repeated suggestion to make the US's northern neighbor the 51st state. Longwoods International, a market research consultancy, found in an April survery of 1,000 Canadian travelers that 36% of respondents said they'd planned to travel to the US in the next 12 months but decided to cancel their plans, while 60% they're less likely to visit the US in the next year due to political reasons. In March, WestJet Airlines vice chairman Alex Cruz told CNBC that Canadian travelers were opting for Central America over the US, and that "there's clearly been a reaction" toward Trump's tariff policies. American travelers visiting other countries like Canada have also previously told BI that they have encountered increased hostility, and that negative perceptions toward Trump's policies have carried over to Americans in general. Delta and WestJet previously explored a joint venture aimed at better coordinating schedules for flight transits, but the initiative was shelved in 2020 after US regulators demanded that WestJet relinquish some takeoff and landing slots at New York's LaGuardia Airport as a condition for approval. WestJet and Korean Air did not immediately respond to requests for comment. Delta Air Lines referred BI to the original press release announcing the investment. Read the original article on Business Insider
