THE WHAT? Korean Air has agreed to sell its inflight catering and duty free business to private equity firm Hahn & Company for KRW990.6 billion, according to a report published by CH Aviation.
THE DETAILS The business will be transferred to a new company on completion, with Korean Air retaining a majority stake in that firm.
THE WHY? The deal has almost certainly been struck to help maintain liquidity as the GVC continues to affect passenger numbers. As part of an agreement reached with the Korea Development Bank, Korean Air is required to raise KRW2 trillion in self-help measures in order to access further assistance.