Korean Air Lines will bring Korean Air Lines CND Service (CND Service), which handles in-flight meal supply and in-flight duty-free sales, back in as a subsidiary after about five years.
Korean Air Lines disclosed on the 12th that it will acquire all the equity in CND Service held by private equity fund (PEF) manager Hahn & Company. The board of directors approved the agenda at a meeting held that afternoon at the Korean Air Lines Seosomun Building in Jung-gu, Seoul.
Accordingly, Korean Air Lines signed a contract to acquire the entire 80% equity in CND Service held by Hahn & Company. The number of shares to be acquired is 5,010,343, and the final acquisition price is expected to be 750 billion won, Korean Air Lines said. Once the transaction is closed, Korean Air Lines will own 100% of CND Service's equity.
Korean Air Lines said the equity acquisition is intended to secure stability in in-flight meal supply and strengthen service competitiveness following the launch of the integrated airline. In the in-flight duty-free sales area, the company also plans to continue promoting new services that can raise customer satisfaction.
Earlier, in Dec. 2020, at the height of the COVID-19 pandemic, Korean Air Lines sold its in-flight meal and in-flight duty-free sales businesses to secure emergency liquidity. Hahn & Company subsequently established CND Service Co., Ltd. and acquired the businesses, with Korean Air Lines holding 20% of the equity and Hahn & Company 80%.