Hanjin Group Chairman Cho Yang-ho
Hanjin Group Chairman Cho Yang-ho takes helm over Jin Air Co. by joining its board to ensure the position of the budget sibling of Korea’s top full-service carrier Korean Air Lines in the heavily contested and congested low-cost carrier market.
Cho has become the only member of the owner family to sit on the board for three years after shareholders of Jin Air approved the appointment at the general shareholders’ meeting on Friday. His eldest son and Korean Air Lines President Cho Won-tae and daughter and Jin Air Vice President Cho Hyun-min stepped down from the board last year.
“I will support Jin Air to become the top budget carrier not only in the country but also in the world,” Cho told reporters after the meeting. It has been 10 years since Jin Air was founded.
Cho’s involvement in the management of Jin Air is also expected to boost the performance of Hanjin KAL Corp., the holding entity of Hanjin Group that owns a 60 percent stake in Jin Air as well as KAL. Jin Air also was buoyant about having the chief owner on board.
The market, however, did not share the upside. Jin Air shares closed Friday down 2.17 percent at 29,350 won, and those of Hanjin KAL also fell 4.89 percent to end at 19,450 won.
Hanjin Group family owners hold a combined 24.8 percent stake in Hanjin KAL, with Chairman Cho owning 17.8 percent, Cho Won-tae 2.3 percent, former vice president of Korean Air Lines Cho Hyun-ah 2.3 percent and Choi Hyun-min 2.3 percent.
Jin Air posted 97 billion won ($89.8 million) in operating profit and 888.4 billion won in sales last year, narrowly chasing the nation’s top low-cost carrier (LCC) Jeju Air Co.
By Moon Ji-woong and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]