Korean Air to Buy Back In-Flight Catering Unit

Korean Air has announced plans to regain full ownership of its in-flight catering and duty-free retail business by acquiring the remaining 80% stake in Korean Air C&D Service from private equity firm Hahn & Company.

 

The airline’s board approved the transaction on 12 March, which involves the purchase of more than five million shares for an estimated 750 billion Korean won. Once the deal is completed, Korean Air C&D Service will operate as a wholly owned subsidiary of the airline.

Korean Air said bringing these services back under its direct control will help ensure a stable supply of in-flight meals and strengthen service quality as the airline prepares for the launch of its future integrated airline structure.

The move will also allow the carrier to further develop its onboard retail offering, including upgraded duty-free products designed to enhance the passenger experience.

The airline originally sold an 80% stake in the catering and duty-free unit to Hahn & Company in 2020 as part of efforts to secure liquidity during the COVID-19 pandemic, while retaining a 20% ownership share.

By repurchasing the remaining stake, Korean Air is restoring full control over a key part of its onboard service operations as the airline continues to rebuild and expand following the pandemic.