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Ishrion
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Updated: Delta increases stake in Korean Air parent

Thu Jun 20, 2019 3:14 pm

https://news.delta.com/delta-equity-inv ... korean-air

Wow. Looks like they're becoming stronger. They're going to need it against JL/AA and NH/UA.
 
jbs2886
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 3:15 pm

Ishrion wrote:
https://news.delta.com/delta-equity-investment-deepens-ties-joint-venture-partner-korean-air

Wow. Looks like they're becoming stronger. They're going to need it against JL/AA and NH/UA.


"Delta intends to increase its equity stake to 10 percent over time, after receiving regulatory approval."
 
MaverickM11
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 3:17 pm

Ishrion wrote:
https://news.delta.com/delta-equity-investment-deepens-ties-joint-venture-partner-korean-air

Wow. Looks like they're becoming stronger. They're going to need it against JL/AA and NH/UA.

Meh...JL/AA does not seem nearly as strong as it should be. Not unlike AA/BA.
I don't take responsibility at all
 
Ishrion
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 3:20 pm

MaverickM11 wrote:
Ishrion wrote:
https://news.delta.com/delta-equity-investment-deepens-ties-joint-venture-partner-korean-air

Wow. Looks like they're becoming stronger. They're going to need it against JL/AA and NH/UA.

Meh...JL/AA does not seem nearly as strong as it should be. Not unlike AA/BA.


They're growing, especially with the upcoming DFW/LAX-HND allocations in 2020, and whatever JL ends up choosing.

AA/BA is definitely a lot stronger.
 
JAMBOJET
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 3:38 pm

Really is an interesting equity stake reminiscent more of the United Avianca stake than Delta’s prior equity stakes (into a holding company rather than directly the airline itself).
The stake doesn’t appear to be in KE directly but rather in the chaebol, Hanjin. Does anyone know if it’s even possible to invest in KE directly given the way it’s structured?
Is Hanjin only made up of KE only now that Hanjin Shipping went bankrupt?
 
x1234
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 3:53 pm

This comes as no surprise. Also the DL/KE JV is one of the most comprehensive Asian networks I've seen connected to the Americas. KE serves literally every airport in China and everything from beach resorts of Phuket, Thailand & Bali, Indonesia to Kathmandu, Nepal, Yangon Myanmar and Mumbai/Delhi India. The only airport missing I've noticed scanning their route network is Dhaka, Bangladesh which is probably too low yielding. Only suggestion is for DL/KE to make Delhi/Mumbai India daily and launch Bangalore, India (BLR). This gives US travelers already in East Asia another option to India (Bangalore has a lot of outsourcing from US multinationals) as actual travel from the US its faster to get to India via Europe.
Last edited by x1234 on Thu Jun 20, 2019 3:55 pm, edited 1 time in total.
 
jbs2886
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 3:53 pm

x1234 wrote:
This comes as no surprise. Also the DL/KE JV is one of the most comprehensive Asian networks I've seen connected to the Americas. KE serves literally every airport in China and everything from beach resorts of Phuket, Thailand & Bali, Indonesia to Kathmandu, Nepal and Mumbai/Delhi India. The only airport missing I've noticed scanning their route network is Dhaka, Bangladesh which is probably too low yielding. Only suggestion is for DL/KE to make Delhi/Mumbai India daily and launch Bangalore, India (BLR).


Except China is carved out of the JV....
 
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KSAAirliner
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 4:05 pm

I think Delta here is trying to create its own empire by getting closer to many airlines in their JVs, !!!

I wonder if the future of this industry will rely on such practice! those who don't belong to any groups wouldn't survive the competition!
 
ITSTours
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 4:10 pm

This is BIG. This is Delta exhibiting a very strong confidence to Korean Air and the new owner Cho Won-tae.

Note Delta did not buy Korean Air stock, they bought Hanjin KAL stock. Hanjin KAL is the parent company for Korean Air and Jin Air. There is an ongoing ownership dispute over Hanjin KAL between Cho family and KCGI, an activist private fund. KCGI has bought more than 15% of the Hanjin KAL threatening Cho family ownership.

Now Delta has bought 4.3% of Hanjin KAL and planned to increase it to 10%, Cho family will never lose a vote battle against KCGI. (Unless Delta bought the stock to give KCGI power--I do not see this.)
 
MIflyer12
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 4:45 pm

Based on yesterday's market cap of KRX (Marketwatch), a 10% stake looks to cost about US $268 million.
 
ITSTours
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 4:54 pm

JAMBOJET wrote:
Really is an interesting equity stake reminiscent more of the United Avianca stake than Delta’s prior equity stakes (into a holding company rather than directly the airline itself).
The stake doesn’t appear to be in KE directly but rather in the chaebol, Hanjin. Does anyone know if it’s even possible to invest in KE directly given the way it’s structured?
Is Hanjin only made up of KE only now that Hanjin Shipping went bankrupt?


Delta does not want to purchase stakes in KE directly for a few reasons:
1) In South Korea there is a weird law that prohibits a single foreigner in the airline board. Re: Jin Air. Emily Lee Cho, the sister of Cho Won-tae, is an American so Jin Air's business license was in danger.
2) The ownership dispute between KCGI and Cho family over Hanjin KAL. If KCGI wins then the current relationship between Delta and Cho family is kinda gone.

Also yes, now Hanjin group owns KE only.
 
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enilria
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 4:55 pm

KSAAirliner wrote:
I think Delta here is trying to create its own empire by getting closer to many airlines in their JVs, !!!

I wonder if the future of this industry will rely on such practice! those who don't belong to any groups wouldn't survive the competition!

We are really seeing the formation of a new SkyTeam from the inside-out with Delta as King and peripheral airlines like Aeroflot and Saudia locked out. I expect Delta to take a lot more control than the stake implies.

I disagree this is just keeping up with JL/NH, I think they will leapfrog them. The NRT/HND situation makes it very difficult for JL/NH to grow. ICN is the premier gateway to connect and can grow.
 
ITSTours
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 5:02 pm

enilria wrote:
KSAAirliner wrote:
I think Delta here is trying to create its own empire by getting closer to many airlines in their JVs, !!!

I wonder if the future of this industry will rely on such practice! those who don't belong to any groups wouldn't survive the competition!

We are really seeing the formation of a new SkyTeam from the inside-out with Delta as King and peripheral airlines like Aeroflot and Saudia locked out. I expect Delta to take a lot more control than the stake implies.

I disagree this is just keeping up with JL/NH, I think they will leapfrog them. The NRT/HND situation makes it very difficult for JL/NH to grow. ICN is the premier gateway to connect and can grow.


Yes, KE/DL is way stronger than JL/AA. UA/NH is very slightly stronger than KE/DL but after 2019 Q2 (when KE starts ICN-BOS and DL does MSP-ICN) KE/DL may surpass. I don't know.
 
JAMBOJET
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 5:07 pm

ITSTours wrote:
JAMBOJET wrote:
Is Hanjin only made up of KE only now that Hanjin Shipping went bankrupt?


Delta does not want to purchase stakes in KE directly for a few reasons:
1) In South Korea there is a weird law that prohibits a single foreigner in the airline board. Re: Jin Air. Emily Lee Cho, the sister of Cho Won-tae, is an American so Jin Air's business license was in danger.
2) The ownership dispute between KCGI and Cho family over Hanjin KAL. If KCGI wins then the current relationship between Delta and Cho family is kinda gone.

Also yes, now Hanjin group owns KE only.

Thanks! Really great info and background!
 
winginit
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 5:18 pm

enilria wrote:
KSAAirliner wrote:
I think Delta here is trying to create its own empire by getting closer to many airlines in their JVs, !!!

I wonder if the future of this industry will rely on such practice! those who don't belong to any groups wouldn't survive the competition!

We are really seeing the formation of a new SkyTeam from the inside-out with Delta as King and peripheral airlines like Aeroflot and Saudia locked out. I expect Delta to take a lot more control than the stake implies.

I disagree this is just keeping up with JL/NH, I think they will leapfrog them. The NRT/HND situation makes it very difficult for JL/NH to grow. ICN is the premier gateway to connect and can grow.


I think this is spot on. We've been saying it for years now, but the traditional alliance model will eventually be rendered effectively useless for members who haven't been tied up through joint ventures. SkyTeam carriers continue to pioneer what will be that replacement model with these equity stakes across joint venture carriers.
 
WPvsMW
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 6:34 pm

QR tried the "invest rather than alliance" route. The difference is Ed and Glen are using lasers rather than shotguns.
 
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enilria
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 6:41 pm

winginit wrote:
enilria wrote:
KSAAirliner wrote:
I think Delta here is trying to create its own empire by getting closer to many airlines in their JVs, !!!

I wonder if the future of this industry will rely on such practice! those who don't belong to any groups wouldn't survive the competition!

We are really seeing the formation of a new SkyTeam from the inside-out with Delta as King and peripheral airlines like Aeroflot and Saudia locked out. I expect Delta to take a lot more control than the stake implies.

I disagree this is just keeping up with JL/NH, I think they will leapfrog them. The NRT/HND situation makes it very difficult for JL/NH to grow. ICN is the premier gateway to connect and can grow.


I think this is spot on. We've been saying it for years now, but the traditional alliance model will eventually be rendered effectively useless for members who haven't been tied up through joint ventures. SkyTeam carriers continue to pioneer what will be that replacement model with these equity stakes across joint venture carriers.

I wonder if DL would unload its China Eastern stake if it could. It appears to me that decision was a backstop that pre-dates the KE deal coming into focus and I doubt DL gained much control of China Eastern with that investment.
 
ITSTours
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 6:48 pm

enilria wrote:
winginit wrote:
enilria wrote:
We are really seeing the formation of a new SkyTeam from the inside-out with Delta as King and peripheral airlines like Aeroflot and Saudia locked out. I expect Delta to take a lot more control than the stake implies.

I disagree this is just keeping up with JL/NH, I think they will leapfrog them. The NRT/HND situation makes it very difficult for JL/NH to grow. ICN is the premier gateway to connect and can grow.


I think this is spot on. We've been saying it for years now, but the traditional alliance model will eventually be rendered effectively useless for members who haven't been tied up through joint ventures. SkyTeam carriers continue to pioneer what will be that replacement model with these equity stakes across joint venture carriers.

I wonder if DL would unload its China Eastern stake if it could. It appears to me that decision was a backstop that pre-dates the KE deal coming into focus and I doubt DL gained much control of China Eastern with that investment.


Remember MU-AF/KL-VS stock swap deal? I do not think DL will unload MU stake.
 
jbs2886
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 8:12 pm

enilria wrote:
winginit wrote:
enilria wrote:
We are really seeing the formation of a new SkyTeam from the inside-out with Delta as King and peripheral airlines like Aeroflot and Saudia locked out. I expect Delta to take a lot more control than the stake implies.

I disagree this is just keeping up with JL/NH, I think they will leapfrog them. The NRT/HND situation makes it very difficult for JL/NH to grow. ICN is the premier gateway to connect and can grow.


I think this is spot on. We've been saying it for years now, but the traditional alliance model will eventually be rendered effectively useless for members who haven't been tied up through joint ventures. SkyTeam carriers continue to pioneer what will be that replacement model with these equity stakes across joint venture carriers.

I wonder if DL would unload its China Eastern stake if it could. It appears to me that decision was a backstop that pre-dates the KE deal coming into focus and I doubt DL gained much control of China Eastern with that investment.


Why? China is excluded from the KE JV. There is still significant value to the Chinese market with China Eastern.
 
global1
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 9:11 pm

China Eastern/Shanghai Airlines are a long term strategic move on the chess board.
WestJet next?
 
grbauc
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 9:31 pm

jbs2886 wrote:
x1234 wrote:
This comes as no surprise. Also the DL/KE JV is one of the most comprehensive Asian networks I've seen connected to the Americas. KE serves literally every airport in China and everything from beach resorts of Phuket, Thailand & Bali, Indonesia to Kathmandu, Nepal and Mumbai/Delhi India. The only airport missing I've noticed scanning their route network is Dhaka, Bangladesh which is probably too low yielding. Only suggestion is for DL/KE to make Delhi/Mumbai India daily and launch Bangalore, India (BLR).


Except China is carved out of the JV....



Also Isn't AA and CX just has comprehensive of a Asian network?
 
jbs2886
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 9:42 pm

grbauc wrote:
jbs2886 wrote:
x1234 wrote:
This comes as no surprise. Also the DL/KE JV is one of the most comprehensive Asian networks I've seen connected to the Americas. KE serves literally every airport in China and everything from beach resorts of Phuket, Thailand & Bali, Indonesia to Kathmandu, Nepal and Mumbai/Delhi India. The only airport missing I've noticed scanning their route network is Dhaka, Bangladesh which is probably too low yielding. Only suggestion is for DL/KE to make Delhi/Mumbai India daily and launch Bangalore, India (BLR).


Except China is carved out of the JV....



Also Isn't AA and CX just has comprehensive of a Asian network?


If I understand/remember correctly, AA and CX not only lack a JV, but aren't particularly close. That being said, AA does have significant capacity to HKG.
 
grbauc
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 9:48 pm

jbs2886 wrote:
grbauc wrote:
jbs2886 wrote:

Except China is carved out of the JV....



Also Isn't AA and CX just has comprehensive of a Asian network?


If I understand/remember correctly, AA and CX not only lack a JV, but aren't particularly close. That being said, AA does have significant capacity to HKG.



I think your right on the JV but I was more thinking that Route network wise AA/CX gets me anything DL/KE wise gets me.
 
Ishrion
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 9:58 pm

grbauc wrote:
jbs2886 wrote:
grbauc wrote:


Also Isn't AA and CX just has comprehensive of a Asian network?


If I understand/remember correctly, AA and CX not only lack a JV, but aren't particularly close. That being said, AA does have significant capacity to HKG.



I think your right on the JV but I was more thinking that Route network wise AA/CX gets me anything DL/KE wise gets me.


I’d say DL/KE is stronger geographically and in general.

With DL you have ICN-ATL/DTW/MSP/SEA and a possible upcoming SLC.
With KE you have ICN-YVR/SEA/SFO/LAX/LAS/DFW/ORD/IAD/ATL/YYZ/JFK/BOS

AA only has HKG-DFW/LAX
CX has HKG-YYZ/YVR/BOS/ORD/LAX/SFO/JFK/EWR/SEA/IAD
 
mpdpilot
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 10:03 pm

jbs2886 wrote:
x1234 wrote:
This comes as no surprise. Also the DL/KE JV is one of the most comprehensive Asian networks I've seen connected to the Americas. KE serves literally every airport in China and everything from beach resorts of Phuket, Thailand & Bali, Indonesia to Kathmandu, Nepal and Mumbai/Delhi India. The only airport missing I've noticed scanning their route network is Dhaka, Bangladesh which is probably too low yielding. Only suggestion is for DL/KE to make Delhi/Mumbai India daily and launch Bangalore, India (BLR).


Except China is carved out of the JV....


Even though it is not part of the JV, it is still a connection option, Delta won't make as much money off of the fare as they would if you flew through PVG or PEK, but you could still connect on KE. Especially in places where Delta doesn't have transpacific flights, flying through ICN would save a connection. Delta.com even has some fine print on the list of options "'Best Match' may list Delta-operated flights first." Even flights to Europe, Delta lists the DL operated flight first even when their isn't much of a difference in schedule.

So, being that expansion in China is challenging, expanding options to ICN is a good idea, after all the fewer connecting passengers flying on SEA-PVG, the more high yielding O&D passengers Delta can accommodate.
One mile of highway gets you one mile, one mile of runway gets you anywhere.
 
panamair
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Re: Delta Buys a 4.3% Stake in Korean Air

Thu Jun 20, 2019 10:44 pm

jbs2886 wrote:

Why? China is excluded from the KE JV. There is still significant value to the Chinese market with China Eastern.


Plus China Eastern is the dominant carrier in the most lucrative Chinese market - Shanghai - and is about to become the second largest carrier at the new Beijing Daxing airport, thus giving Delta another key "Hub" in China...there is no way Delta will be giving up its MU stake and Board Observer seat.
 
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LAX772LR
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Re: Delta Buys a 4.3% Stake in Korean Air

Fri Jun 21, 2019 3:55 am

jbs2886 wrote:
That being said, AA does have significant capacity to HKG.

Two flights is "significant capacity"....?

Compare that to what DL metal flies into ICN or UA metal flies into HND/NRT; or to what AA itself flies into HND/NRT.
I myself, suspect a more prosaic motive... ~Thranduil
 
dmstorm22
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Re: Delta Buys a 4.3% Stake in Korean Air

Fri Jun 21, 2019 4:03 am

LAX772LR wrote:
jbs2886 wrote:
That being said, AA does have significant capacity to HKG.

Two flights is "significant capacity"....?

Compare that to what DL metal flies into ICN or UA metal flies into HND/NRT; or to what AA itself flies into HND/NRT.


Forget those, looking just at HKG, UA has more capacity.

AA should do more with CX, but the one downside is just the slightly further stage length. ICN and NRT/HND are just more viable from a distance perspective imo than HKG as a TPAC JV hub
 
FromCDGtoSYD
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Re: Delta Buys a 4.3% Stake in Korean Air

Fri Jun 21, 2019 5:39 am

I just hope KE FF wont just become DLs toys now. The program does need an overhaul but there are so many ways it could go wrong, and seeing how Flyingblue went I fear what could become of Skypass...
 
ITSTours
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Re: Delta Buys a 4.3% Stake in Korean Air

Fri Jun 21, 2019 5:58 am

FromCDGtoSYD wrote:
I just hope KE FF wont just become DLs toys now. The program does need an overhaul but there are so many ways it could go wrong, and seeing how Flyingblue went I fear what could become of Skypass...


Korea Fair Trade Commission heavily regulates the FFP so I don't see a Skypeso-like devaluation in short-term.
 
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KSAAirliner
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Re: Delta Buys a 4.3% Stake in Korean Air

Fri Jun 21, 2019 10:59 am

enilria wrote:
KSAAirliner wrote:
I think Delta here is trying to create its own empire by getting closer to many airlines in their JVs, !!!

I wonder if the future of this industry will rely on such practice! those who don't belong to any groups wouldn't survive the competition!

We are really seeing the formation of a new SkyTeam from the inside-out with Delta as King and peripheral airlines like Aeroflot and Saudia locked out. I expect Delta to take a lot more control than the stake implies.
.


Interesting point, do you see any sign of such JVs happening in the Middle East anytime soon? EY and SV maybe?
 
HeeseokKoo
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Re: Delta Buys a 4.3% Stake in Korean Air

Fri Jun 21, 2019 11:02 am

MIflyer12 wrote:
Based on yesterday's market cap of KRX (Marketwatch), a 10% stake looks to cost about US $268 million.

The stock dropped by 15% in a day despite this seemingly good news. DL lost money already but the cost for the additional stake would drop by some.
 
MIflyer12
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Re: Delta Buys a 4.3% Stake in Korean Air

Fri Jun 21, 2019 11:56 am

ITSTours wrote:

Yes, KE/DL is way stronger than JL/AA. UA/NH is very slightly stronger than KE/DL but after 2019 Q2 (when KE starts ICN-BOS and DL does MSP-ICN) KE/DL may surpass. I don't know.


Would you care to define stronger here?
 
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enilria
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Re: Delta Buys a 4.3% Stake in Korean Air

Fri Jun 21, 2019 1:45 pm

jbs2886 wrote:
enilria wrote:
winginit wrote:

I think this is spot on. We've been saying it for years now, but the traditional alliance model will eventually be rendered effectively useless for members who haven't been tied up through joint ventures. SkyTeam carriers continue to pioneer what will be that replacement model with these equity stakes across joint venture carriers.

I wonder if DL would unload its China Eastern stake if it could. It appears to me that decision was a backstop that pre-dates the KE deal coming into focus and I doubt DL gained much control of China Eastern with that investment.


Why? China is excluded from the KE JV. There is still significant value to the Chinese market with China Eastern.

It was originally envisioned as a gateway to Asia. That is gone now. Of course it's excluded. There isn't even a legal means to include it (with MU or KE) since China doesn't have Open Skies, but if a passenger flies from USA to ICN to China then long leg is still part of the JV.
 
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enilria
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Re: Delta Buys a 4.3% Stake in Korean Air

Fri Jun 21, 2019 1:59 pm

KSAAirliner wrote:
enilria wrote:
KSAAirliner wrote:
I think Delta here is trying to create its own empire by getting closer to many airlines in their JVs, !!!

I wonder if the future of this industry will rely on such practice! those who don't belong to any groups wouldn't survive the competition!

We are really seeing the formation of a new SkyTeam from the inside-out with Delta as King and peripheral airlines like Aeroflot and Saudia locked out. I expect Delta to take a lot more control than the stake implies.
.


Interesting point, do you see any sign of such JVs happening in the Middle East anytime soon? EY and SV maybe?

IMHO zero chance with SV because it does not fit with the political correctness of DL. Frankly, if they did a deal I would expect it with EK. Doing a deal with EY doesn't accomplish enough to be worthwhile IMHO. If they are going to shred their years of whining about the ME3 they might as well align themselves with the #1 carrier in the region. They could also use the JV to halt further U.S. growth by EK.
 
ITSTours
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Re: Delta Buys a 4.3% Stake in Korean Air

Fri Jun 21, 2019 2:16 pm

MIflyer12 wrote:
ITSTours wrote:

Yes, KE/DL is way stronger than JL/AA. UA/NH is very slightly stronger than KE/DL but after 2019 Q2 (when KE starts ICN-BOS and DL does MSP-ICN) KE/DL may surpass. I don't know.


Would you care to define stronger here?


Seat capacity, as usual.
 
Prost
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Re: Delta Buys a 4.3% Stake in Korean Air

Fri Jun 21, 2019 3:33 pm

Reuters has an article that frames the purchase as Delta being a White Knight:

https://www.reuters.com/article/us-delt ... SKCN1TL1EO

SEOUL/CHICAGO (Reuters) - Delta Air Lines bought a small stake in Korean Air Lines Co’s parent company and said it wants to increase it to 10%, giving a boost to the management of South Korea’s top carrier that seeks to thwart a local activist fund’s challenge.

Shares of the parent, Hanjin Kal Corp, tumbled 15 percent on Friday, as Delta’s move dashed investor hopes of a battle to control the family-run group that had driven up shares since the death of patriarch Cho Yang-ho in April.

Korean Air, which has a joint venture with Delta since last year, said on Friday it believes Delta’s 4.3 percent stake buy intends to ensure the ‘stable management” of the company and support for its leadership.


There’s more at the article. 2 years ago the narrative seemed to be DL needed KE, now it seems KE management can benefit from DL’s investment. When both parties can see the benefits of the partnership immediately, it seems like this ought to be a good JV.
 
ITSTours
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Re: Delta Buys a 4.3% Stake in Korean Air

Wed Jun 26, 2019 4:27 am

Rumor tells that Airbus bought 2.4% of Hanjin KAL stake as well through Credit Suisse.
http://www.etoday.co.kr/news/section/ne ... no=1769869 (Article in Korean)

Sounds totally random and I don't think it is likely but...
 
FromCDGtoSYD
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Re: Delta Buys a 4.3% Stake in Korean Air

Wed Jun 26, 2019 5:05 am

ITSTours wrote:
Rumor tells that Airbus bought 2.4% of Hanjin KAL stake as well through Credit Suisse.
http://www.etoday.co.kr/news/section/ne ... no=1769869 (Article in Korean)

Sounds totally random and I don't think it is likely but...


Reports did say that Airbus was expecting some A350 action but that it wouldn't be in time for PAS... Maybe, just maybe...
 
777Mech
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Re: Delta Buys a 4.3% Stake in Korean Air

Wed Jun 26, 2019 4:42 pm

Can we at least get WiFi on Korean now? Sheesh..
 
x1234
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Re: Delta Buys a 4.3% Stake in Korean Air

Wed Jun 26, 2019 4:49 pm

Yes with South Korea having one of the fastest broadband markets in the world I'm surprised KE hasn't installed the latest generation of sat-com WiFi...
 
x1234
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Re: Delta Buys a 4.3% Stake in Korean Air

Wed Jun 26, 2019 4:54 pm

Also the latest generation of satellite antenna on the top of the aircraft have to spin to lock onto the satellite but is smaller than previous generations reducing drag (KE maybe concerned about increased fuel burn due to the sat-com antenna).
 
hoons90
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Re: Delta Buys a 4.3% Stake in Korean Air

Wed Jun 26, 2019 8:53 pm

x1234 wrote:
Yes with South Korea having one of the fastest broadband markets in the world I'm surprised KE hasn't installed the latest generation of sat-com WiFi...


KE was actually one of the first airlines to install in-flight wifi back in 2005 (along with LH (in 2004) and CI) through Boeing's Connexion product. KE even had an in-house facility to install it. Boeing, however, pulled the plug on Connexion a few years later.
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ITSTours
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Re: Delta Buys a 4.3% Stake in Korean Air

Wed Jun 26, 2019 10:20 pm

777Mech wrote:
Can we at least get WiFi on Korean now? Sheesh..


Their 737 MAX has Wi-Fi. Except it can't fly...
 
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LAXintl
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Re: Delta Buys a 4.3% Stake in Korean Air

Tue Sep 10, 2019 3:58 pm

Just upped stake to 9.21%

Delta Air Lines hikes stake in Hanjin Kal to 9.21%
https://uk.reuters.com/article/korean-a ... KS6N23R01J
From the desert to the sea, to all of Southern California
 
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ElroyJetson
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Re: Updated: Delta increases stake in Korean Air parent

Wed Sep 11, 2019 5:16 am

I think any reasonable person who is an av geek has to stand back in awe of DL's strategic decisions. They never miss a beat. There were many who have said DL 's partnership with KE will pale in comparison to the UA and AA alliances in Japan.

The reality in NRT is not really Tokyo and Haneda is a tightly slot constricted airport with very limited opportunities for growth.

An alliance with KE is a masterstroke in that KE has one of the best route networks in Asia with one of the best transfer airports in the world in ICN. Anyone who speculated DL was not poised for growth in Asia has not been paying attention.

KE and DL now fly from virtually every major city in North American to ICN with convenient one stop connecting to almost anywhere in Asia.

As so often with DL a brilliant move imho.
707 717 727 72S 737 733 737-700 747 757 753 767-300 764 A319 A320 DC-9-10 DC-9-30 DC-9-50, MD-82 MD-88 MD-90 DC-10-10 DC-10-40 F-100
 
JAMBOJET
Posts: 272
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Re: Updated: Delta increases stake in Korean Air parent

Wed Sep 11, 2019 12:30 pm

ElroyJetson wrote:
I think any reasonable person who is an av geek has to stand back in awe of DL's strategic decisions. They never miss a beat. There were many who have said DL 's partnership with KE will pale in comparison to the UA and AA alliances in Japan.

The reality in NRT is not really Tokyo and Haneda is a tightly slot constricted airport with very limited opportunities for growth.

An alliance with KE is a masterstroke in that KE has one of the best route networks in Asia with one of the best transfer airports in the world in ICN. Anyone who speculated DL was not poised for growth in Asia has not been paying attention.

KE and DL now fly from virtually every major city in North American to ICN with convenient one stop connecting to almost anywhere in Asia.

As so often with DL a brilliant move imho.


Delta makes a lot of great decisions, including their strategic investments, but I don't know that anyone would stand in awe of it... Delta is forced to make these investments because Skyteam is so weak relative to partners in OneWorld and Star.

South America: Only Delta Partner was the mess, Aerolineas Argentinas, so Delta buys (invests in) another mess, GOL, and tries to keep them financially alive. AA has LATAM. United has AV and now Azul. Neither needed to do what Delta did

Mexico: Delta has no IAH or DFW to go into the interior of Mexico and also has no other South American partner outside of GOL and Aerolineas Argentinas so they invest 49% and send a team to MEX to reorient the network to help Delta's weakness. AA can use DFW and MIA to serve North American customers to Mexico easily. UA can use IAH. Neither needed to do what Delta did. Still a great move by Delta to do that though and shore up a weakness to MEX.

Oceania: Delta literally has no partner whatsoever so they do a JV with Virgin Australia to help make things slightly better. AA has QF. UA has their strong Oceania position already + NZ.

Asia: Try to buy JL into Skyteam: Fail. Try to buy the other failing Japanese carrier with the two a380s (forgot the name): Fail. So Delta does a JV with the one carrier in Skyteam where they can: KE. They can't do one in China and I doubt they'd want to risk doing one with a Taiwanese carrier (they can't even call it Taiwan on their website without angering China) but who knows... And, all the while, they push one of the Chinese sky team carriers into American's waiting arms. AA has JL which was clearly Delta's first choice all along and CX. UA has basically every other premier Asian airline in Star.
Delta's bid for JAL makes it rather obvious that KE wasn't their first choice for a partner in Asia. Not to mention their well-documented attempt at forcing the Japanese government to allow the Delta Narita hub to move to Haneda. They wanted a hub in HND, not ICN. And their investment in KE's holding company has been mentioned on this thread as an attempt to hold off activist investors in Korea.

Europe: KLM is a great airline and partner. AF is a disaster. Delta is growing in NYC (years ago) but barely flies to the most important market from there, LHR, so they buy Singapore's failing position in Virgin and Delta turns Virgin into Delta Atlantic and reorients most, but not all, of Virgin toward supporting Delta North American fliers. UA already had a strong position in LHR given their history and has an extremely strong partner in LH Group. AA has the biggest partner in the most slot controlled airport in the world, LHR & BA + IAG with MAD to complement their MIA hub well.

Canada: Westjet seems like a coup for DL relative to AA. But UA obviously already had AC.

I just don't know that it's so much of a "Wow Delta!!!" but more of a they kind of had to... but props to Delta for shoring up weaknesses.
 
toobz
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Re: Updated: Delta increases stake in Korean Air parent

Wed Sep 11, 2019 12:35 pm

^^^

And yet DL is the most profitable airline in the world..with all these ”weaknesses”. Not sure your argument stacks up here
 
JAMBOJET
Posts: 272
Joined: Tue Dec 11, 2018 6:23 pm

Re: Updated: Delta increases stake in Korean Air parent

Wed Sep 11, 2019 12:37 pm

toobz wrote:
^^^

And yet DL is the most profitable airline in the world..with all these ”weaknesses”. Not sure your argument stacks up here

Not sure anyone would argue that’s because of their Asian network, skyteam membership, or investment in KE.
But certainly a very fair critique that it's a part of their overall profitability and ability to provide better access to markets for their customers.
Last edited by JAMBOJET on Wed Sep 11, 2019 12:46 pm, edited 1 time in total.
 
toobz
Posts: 870
Joined: Mon Jan 18, 2010 6:33 am

Re: Updated: Delta increases stake in Korean Air parent

Wed Sep 11, 2019 12:45 pm

I think their Asian network is just fine actually with KE. If not amazing. Skyteam...well thats an opinion i suppose.

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