Korean Air to acquire C&D Service from Han&Company, gain full ownership

Korean Air announced on December 12 that it will acquire all shares of its in-flight meals and onboard duty-free sales unit, Korean Air C&D Service, from Han&Company. The move would give Korean Air full ownership of the unit.

The decision was approved by Korean Air’s board at the Seosomun Building in Seoul’s Jung District. The deal covers 5,013,343 shares and a final purchase price of 750 billion won. If the transaction closes, C&D Service will become a wholly owned subsidiary of Korean Air.

Background notes that Han&Company established C&D Service, with Korean Air holding 20% and Han&Company 80%. After the Covid-19 pandemic, Korean Air sold its in-flight meals and onboard duty-free sales business to secure liquidity, and Han&Company later formed C&D Service to operate those assets.

Korean Air says the acquisition aims to stabilize the supply of in-flight meals and strengthen service competitiveness as the airline pursues its strategy after the launch of Korea’s integrated carrier. The company also plans to continue developing onboard duty-free sales as a value-adding service.

For international readers, in-flight meals and onboard duty-free sales represent significant ancillary revenue and involve complex, global supply chains. Changes in ownership or procurement could affect product sourcing, pricing, and the in-flight experience on long-haul and regional routes, including those to the United States.

The deal reflects broader consolidation trends in Korea’s aviation sector as carriers seek to optimize costs and revenue in a recovering market. The closing timeline and regulatory approvals remain to be determined.