(Bloomberg) -- Delta Air Lines Inc (NYSE:DAL). purchased an indirect stake in joint-venture partner Korean Air Lines Co. and plans to increase the investment as it seeks to tap growth opportunities outside the U.S.
The Atlanta-based airline acquired a 4.3% stake in Hanjin-Kal Corp., Korean Air’s largest shareholder, and expects to boost its holding to 10% over time, subject to regulatory approval. The cost of the investment, announced Thursday, wasn’t disclosed.
The deal comes about 13 months after the two carriers began a trans-Pacific venture that allows them to coordinate flights to 80 destinations in Asia and 290 in the U.S. Hanjin-Kal owns about 30% of Korean Air, according to data compiled by Bloomberg.
The agreement is part of Delta’s strategy to expand outside the mature U.S. market by taking minority stakes in other carriers, particularly in emerging markets. Delta already owns shares in China Eastern Airlines Corp., Grupo Aeromexico SAB and Brazil’s Gol Linhas Aereas Inteligentes SA.
“This is already one of our fastest-integrating and most successful partnerships, and experience tells us this investment will further strengthen our relationship,” Delta Chief Executive Officer Ed Bastian said in a statement.
The Korean Air partnership is contributing to Delta’s first growth in the Asia Pacific region since 2012, the U.S. carrier said. The airlines also cooperate in air cargo.
