Korean Air chairman steps down as CEO of budget affiliate Jin Air (updated)

Jin Air Co

10/05/2018 10:36

* Cho Yang-ho replaced by professional manager, retains
board seat
    * Calls for Korean Air family members to stay away from
management

 (Add reason for the replacement, background)
    SEOUL, May 10 (Reuters) - Korean Air Lines  003490.KS 
Chairman Cho Yang-ho has stepped down from his post of co-chief
executive at budget affiliate Jin Air  272450.KS , amid growing
pressure on the members of the airline giant's controlling
family to stay away from management.
    Cho Yang-ho has been replaced as co-CEO by Kwon Hyuk-min,
currently the head of maintenance at Jin Air. Cho, however,
retains his post as an internal board director.
    The management change comes at a time when the airline group
is already under fire over bad behaviour by Cho's younger
daughter, Cho Hyun-min, who allegedly threw water at an attendee
of a business meeting last month.
    Cho Hyun-min is the younger sister of Heather Cho who made
headlines around the world in 2014 when she lost her temper over
the way she was served nuts in first class on a Korean Air plane
and demanded that it return to its gate at a New York airport.
    She was jailed and returned to work as an executive of
Korean Air's hotel affiliate in March.
    In response to the public backlash over what is seen as
unchecked bad behaviour by the rich and powerful, Cho Yang-ho
has publicly apologised and made his daughters step down from
their positions at the airline.
    He has also said Korean Air would create a vice chairman
position amid growing calls for professional managers.
    The company reported a 56 percent jump in first-quarter
operating profit on Thursday.
    Jin Air shares ended slightly before results were announced.
The stock is down about 4 percent for the month, hit by concerns
Jin Air could lose its licence following the discovery Cho
Hyun-min had been a registered board member despite being a U.S.
citizen, in an alleged violation of transport law.  urn:newsml:reuters.com:*:nL3N1SG14V

 (Reporting by Hyunjoo Jin; Editing by Himani Sarkar)
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Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))