Delta buys 4.3% stake in Korean Air parent, seeks to expand in Asia

Delta said Thursday it had acquired a 4.3% stake in joint-venture partner Korean Air’s parent company with a view toward expanding across Asia. Delta is growing internationally both through joint ventures - which allow airlines to coordinate fares and schedules while building a presence in new markets - and equity investments, which help airlines align their respective strategies. Thecarrier said it intended to increase its stake in Hanjin Kal Corp, which owns about 30% of Korean Air, to 10% over time, after receiving regulatory approval. It did not disclose how much it paid for the 4.3% stake, worth about $88m, according to current market prices. Delta’s stake purchase was intended to ensure its partner’s “stable management rights”, Korean Air said. Delta has said it sees Seoul’s Incheon International Airport, the hub of Korean Air, as a gateway for more destinations across Asia. “Long term, the partnership and the joint venture is strong in terms of size and there’s no reason to think it can’t grow substantially into the future,” Delta CEEd Bastian said at an aviation summit earlier this month in Seoul.<br/>