Korean Air Reacquires In-flight Meal Business, Acquiring 80% Stake in C&D Services
Korean Air has decided to reacquire the in-flight meal business it sold during the COVID-19 pandemic, purchasing 80% of C&D Services from Han & Company.
Korean Air has announced its plan to reevaluate its in-flight meal service operations by reacquiring the company, C&D Services, which it sold off during the COVID-19 pandemic for liquidity purposes. The airline's board approved the acquisition of an 80% stake from private equity firm Han & Company for approximately 750 billion won, with the transaction expected to be completed by June 1. C&D Services is responsible for supplying in-flight meals and selling duty-free products, making this move significant for Korean Air's operational structure.
Previously, during the pandemic in 2020, Korean Air opted to sell its in-flight catering and duty-free segments as a measure to secure emergency liquidity amid a drastic decline in travel. Han & Company had founded C&D Services to take over these operations. Once Korean Air completes this transaction, it will own 100% of C&D Services, fully integrating it into its corporate structure, which could enhance its supply chain management and service offerings during a time of industry recovery.
Korean Air has emphasized that this acquisition is aimed at stabilizing its in-flight service quality following the establishment of a unified airline service structure and improving its competitive edge in the market. The airline also plans to introduce new services in the duty-free sales sector, aiming to boost customer satisfaction going forward, reflecting its commitment to a more integrated approach in enhancing passenger experiences and operational efficiency in the recovering aviation market.