Japan Airlines (JAL) acquired equity in Hanjin KAL(180640), the holding company of Korean Air Lines(003490). The investment came as it formed a strategic cooperation with Korean Air Lines, and with the equity gap between Cho Won-tae of Hanjin Group and Hoban Group in Hanjin KAL having narrowed, some view the move as securing an ally.
On the 4th, according to the aviation industry, Japan Airlines said it acquired Hanjin KAL shares the previous day (on the 3rd) along with signing a strategic partnership with Korean Air Lines. It did not disclose the investment amount or equity ratio, but no large-shareholding filing (5% or more) was made. Korean Air Lines said, "JAL made an independent investment considering Hanjin KAL's long-term market value."
The aviation industry sees the Hanjin KAL equity secured by JAL as friendly equity for the chairman's side, similar to Delta Air Lines. According to Hanjin KAL's semiannual report, the company equity held by the chairman Cho and related parties is 20.57%, and Hoban Group's equity is 19.83%, but Hoban Group raised its equity ratio to 20.15% in July, narrowing the gap to 0.42 percentage points.
Other major shareholder equity in Hanjin KAL includes Delta Air Lines at 14.90%, Korea Development Bank (KDB) at 10.58%, and the National Pension Service at 5.11%. Among these, Delta Air Lines and KDB are classified as friendly equity for the chairman's side. The chairman's side equity stands at 46.05%, far ahead of Hoban Group's side.
Meanwhile, Korean Air Lines plans to use the strategic partnership as a springboard to deepen cooperation in its existing business areas of passenger and cargo, explore cooperation in ground operations and aircraft maintenance, and review the introduction of sustainable aviation fuel (SAF) to achieve carbon neutrality.