Japan Airlines Buys Stake in Hanjin KAL, Deepens Partnership with Korean Air

Japan Airlines has bought shares in Hanjin KAL, the holding company that controls Korean Air, as the two carriers announced a renewed, wide-ranging partnership, industry sources said Friday.

JAL revealed the stake purchase Wednesday alongside the partnership announcement without disclosing the size of the holding or the price paid.

"It is an independent investment decision based on Hanjin KAL's long-term market value," JAL said. No regulatory filing has surfaced disclosing a stake of 5 percent or more.

The purchase comes at a delicate moment in Hanjin KAL's ownership structure.

Hanjin Group Chair Walter Cho and affiliates held 20.57 percent of the company as of its latest half-year report, while Korean construction company Hoban Group held 19.83 percent. Hoban has since narrowed the gap to 0.42 percentage point after raising its stake to 20.15 percent in July.

Although Hoban has not formally sought management control, its continued stake-building since becoming KAL's second-largest shareholder in 2022 has fueled speculation of a potential power struggle.

JAL's investment could bolster Cho's friendly shareholder base, which already includes Korean Air's long-standing strategic partner and a 14.9 percent shareholder in KAL.

Other major shareholders included state-run Korea Development Bank, at 10.58 percent, which backed Korean Air's acquisition of Asiana Airlines. The National Pension Service holds 5.11 percent.

"It's worth watching whether JAL, which follows Delta as another of Korean Air's global strategic partners to hold Hanjin KAL shares, expands its stake in the coming days," an industry official said.

Meanwhile, the airlines signed a memorandum to broaden codeshare flights and mileage ties once Korean Air finalizes its Asiana Airlines merger in December, when Japan routes are set to climb from about 250 weekly flights to roughly 400.

Korean Air and JAL have flown jointly since the 1960s and launched formal codeshare operations in 2004.

The airlines are also exploring shared use of aircraft maintenance, ground handling and cabin crew training facilities, along with a joint cargo business. They plan to discuss joint procurement and investment in sustainable aviation fuel.

"Combining the infrastructure and know-how of both companies should let us maximize benefits for customers," a Korean Air official said.