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Korean Air Lines has hoarded $1.8b after it sold off in-flight meal and concession business for nearly 1t won ($842m) on the heels of rights offering worth 1.13t won, securing itself safely against the protracted virus pandemic crisis that has more or less grounded passenger flight operation for most of the year. The full-service carrier announced Tuesday it signed a deal with Hahn & Co. to sell off its in-flight meal and concession business for 990.6b won. Hahn & Co. plans to set up a new entity for the operation, and Korean Air Lines will acquire a 20% stake in the new company to secure stable supply of its in-flight meals and concession goods. The two parties aim to complete the deal in the next two to three months. With the latest divesture, Korea’s No. 1 full-service carrier would add 2.1t won to its coffers. <br/>

Czech operator Smartwings Group has formally sought temporary creditor protection to buy time to achieve financial stability during the air transport downturn. Smartwings Group, which includes both Smartwings and Czech Airlines, says it has filed with a Prague court for an extraordinary moratorium. The temporary measure provides space to negotiate with banks, aircraft leasing companies and other creditors to find a financing solution which protects the airlines at a time when their revenues have been depleted. “We believe that the steps we are taking today will help us to successfully overcome this unprecedented crisis,” says Smartwings chairman Jiri Simane. He says loan guarantee applications are “complicated and lengthy” and the moratorium provides time to find a sustainable financing plan that will benefit all parties including creditors, employees and passengers. “We are exploring all potential financing options to ensure business continuity of both companies,” says Simane.<br/>