Korean Air has decided to purchase a 54.9% stake in Jin Air from its parent Hanjin KAL for KRW604.8bn (KRW21,100 per share). Korean Air announced in its public disclosure that the purchase is intended for the creation of synergies via vertical integration of its LCC affiliates. Hanjin KAL, meanwhile, stated that the disposal is aimed at improving its financial structure.
Korean Air is currently in the process of acquiring and merging with Asiana Airlines. If the deal goes through, the LCC affiliates of Asiana Airlines (Air Busan and Air Seoul) would become subsidiaries to Korean Air, in addition to Jin Air.
Meanwhile, Korean Air has announced that it will gradually resume its long-haul flight operations from July on the recovery of international travel demand. The routes to be resumed are Incheon-Las Vegas, Incheon-Milan, and Incheon-Vienna.
The airline’s Las Vegas flights will resume on July 10. The flights will operate three times a week on Wednesday, Friday, and Sunday, using an Airbus A330-200.
Flights to Milan will recommence July 1. The Incheon-Milan service will operate three times a week on Wednesday, Friday, and Sunday.
Three weekly flights to the capital of music - Vienna, Austria - will resume on July 1.