Delta Air Lines takes a 4.3% stake in Korean Air

posted on 24th June 2019 by Justin Burns
Delta Air Lines takes a 4.3% stake in Korean Air

Delta Air Lines has acquired a 4.3 per cent equity stake in Hanjin-KAL, the largest shareholder of Korean Air.

The US carrier said the investment demonstrates Delta’s commitment to the success of its joint venture with Korean Air and the customer benefits, market positioning and growth opportunities the partnership enables.

Delta intends to increase its equity stake to 10 per cent over time, after receiving regulatory approval.

“Together with the team at Korean Air, we have a vision to deliver the world’s leading trans-Pacific joint venture for our shared customers, offering the strongest network, the best service and the finest experience connecting the U.S. with Asia,” said Delta CEO, Ed Bastian.

“This is already one of our fastest-integrating and most successful partnerships, and experience tells us this investment will further strengthen our relationship as we continue to build on the value of the joint venture.”

Delta and Korean Air operate a robust trans-Pacific joint venture, providing customers with seamless access to more than 290 destinations in the US and over 80 destinations in Asia, including the partnership’s award-winning hub at Seoul-Incheon (ICN).

Since launching in May 2018, Delta and Korean Air have strengthened cooperation by expanding joint operations in the trans-Pacific to include more than 1,400 codeshare flights, including connections throughout Asia and the U.S.

Teams at both airlines have also worked closely together to provide the best travel experience for customers between the U.S. and Asia, integrate sales and marketing activities, and enhance loyalty program benefits.

Additionally, Korean Air and Delta have launched cargo cooperation across one of the most comprehensive route networks in the trans-Pacific market.

The partnership is contributing to Delta’s first year-over-year growth in the Asia Pacific region since 2012, with new service launched earlier this year between Minneapolis/St. Paul and Seoul, as well as Seattle and Osaka, operated in partnership with Korean Air. Additionally, Korean Air has launched new service linking Boston with Seoul.

The joint venture builds on nearly two decades of close partnership between Korean Air and Delta, both founding members of the SkyTeam airline alliance.