South Korea’s flag carrier Korean Air intends to sell off its inflight duty free and catering units to private equity investment group Hahn & Company.
The move was decided during a Korean Air Board of Directors meeting held yesterday (7 July).
Under the terms of the deal, Hahn & Company will have the exclusive rights to negotiate with Korean Air on the transfer of the inflight business, according to a disclosure from South Korea’s DART regulatory service.
Korean Air says it will discuss the details of the transaction with Hahn & Company and will immediately disclose any specific decisions in the future as necessary.
“Korean Air will make every effort to ensure the treatment and employment stability of its business sector employees and will continue to communicate closely with trade unions,” read a Korean Air statement.
In addition to the divestment of the inflight business, Korean Air plans to sell off real estate assets including Wangsan Marina and increase its paid-in capital this month in bids to increase liquidity.