Korean Air Reacquires In-Flight Meal and Duty-Free Services

Korean Air is regaining control of its in-flight meal and duty-free sales operations, which were sold six years ago to secure financial liquidity during the COVID-19 pandemic. This move, spearheaded by Hanjin Group Chairman Cho Won-tae, signifies a return to full ownership of these core services as the airline prepares for its launch as a mega-carrier.

Transaction Details

On March 12, 2026, Korean Air’s board of directors approved the acquisition of the 80% stake in Korean Air Catering & Duty Free Service (C&D Service) from Hahn & Company. The estimated acquisition price is 750 billion won (MSN). This will bring Korean Air’s total ownership of C&D Service to 100%, making it a fully owned subsidiary.

Background of the Sale and Reacquisition

In 2020, Korean Air sold an 80% stake in C&D Service to Hahn & Company for 790 billion won to address financial challenges brought on by the significant decline in air travel due to the COVID-19 pandemic (sedaily.com). Chairman Cho Won-tae publicly stated in 2021 his intention to reacquire the business once the airline’s financial situation stabilized (sedaily.com).

Strategic Rationale

The reacquisition of C&D Service is driven by several strategic factors. C&D Service manages both in-flight meal supply and onboard duty-free sales for Korean Air. Bringing these operations back in-house is expected to ensure a stable supply of in-flight meals, particularly as Korean Air integrates with Asiana Airlines and anticipates increased passenger volume. Controlling the onboard duty-free business is seen as a way to enhance service competitiveness and improve customer satisfaction (sedaily.com).

Financial Performance and Investment Recovery

The in-flight meal business has historically been a profitable venture for Korean Air, with operating profit margins of 20-30% during periods of direct operation. The value of C&D Service has also increased since 2020, rising from an estimated 1 trillion won to approximately 1.7 trillion won (sedaily.com). Hahn & Company’s sale of its stake is considered a successful investment recovery, capitalizing on the rebound in travel demand.

Debt Considerations

The transaction includes Korean Air jointly assuming approximately 700 billion won in borrowings held by C&D Service (sedaily.com).

Future Outlook

A Korean Air official stated that securing the stake in C&D Service is a key step in ensuring in-flight meal stability and strengthening overall service competitiveness following the launch of the integrated airline. The company also plans to expand novel services to further enhance the customer experience (sedaily.com). The industry views this acquisition as a sign of normalization following the disruptions caused by the pandemic and a full implementation of Chairman Cho’s strategy for service enhancement.

the 93.2% stake in My Chef, held by C&D Service, will not be included in this transaction and will be distributed as an in-kind dividend (sedaily.com).