Korean Air to be restructured under new holding company

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Korean Air's (KAL) board has approved a plan to transform the carrier to a new holding company structure starting August.

The SkyTeam carrier has announced that it will form Hanjin KAL Holdings as a new holding company that will take over management of its investment business.

KAL will be the main operating business of Hanjin KAL and focus on its airline business operations. Nevertheless, it will still manage its aerospace, in-flight services and limousine bus businesses.

KAL says that the new structure will help to "increase the company's asset value and improve its transparency", with KAL shareholders to receive proportionate holdings in Hanjin KAL.

Hanjin KAL will also take control of the general management of KAL's affiliate companies and intellectual property, and Hanjin Transportation's president and chief operating officer Tai Soo Suk will be appointed as its president.

The split of the company will go to a shareholder's vote in late June, and if approved, will take effect from 1 August.

KAL operates a fleet of 153 aircraft and has a further 49 on order, including Boeing 787-9s, Bombardier CSeries aircraft and Airbus A380s.