South Korean tobacco company KT&G has entered into a memorandum of understanding with American tobacco giant Altria to pursue long-term growth opportunities across international markets and adjacent product categories. The partnership aims to leverage the complementary strengths of both companies in innovative nicotine and non-nicotine products, with a particular focus on expanding their presence in the rapidly growing modern oral nicotine segment.

As an initial step in their collaboration, the two companies are jointly acquiring European nicotine pouch manufacturers. Through a Special Purpose Company established in Sweden, they will acquire 100% stakes in ASF AB Co., Ltd., a nicotine pouch production and sales company, and ASF AS Co., Ltd., a nicotine pouch sales company. The acquisition amount totals approximately 1.76 billion Swedish krona (around 262.4 billion Korean won).

The joint acquisition targets the high-growth nicotine pouch market, allowing KT&G to rapidly expand its next-generation tobacco portfolio and strengthen new growth drivers. The partnership will explore opportunities to collaborate on expanding the global demand for nicotine pouch products, including potential expansion of the on! and on! PLUS product portfolio to select countries, as well as strategic transactions in the modern oral space.

Beyond nicotine products, the collaboration extends to non-nicotine segments through KT&G's subsidiary, Korea Ginseng Corporation (KGC), which will jointly explore opportunities with an Altria subsidiary in the health functional foods sector. KT&G has set ambitious growth targets, aiming for double-digit growth in revenue and operating profit for the year, buoyed by strong global performance that has seen five consecutive quarters of triple growth in revenue, operating profit and sales volume.

Finnair is gradually restoring its Airbus A321 fleet to service after an uncertified cleaning procedure forced the grounding of eight aircraft. The airline confirmed that seat covers were washed with water, a method not properly certified to ensure fire protection standards were maintained. This safety concern prompted the removal of the affected aircraft from service, leading to operational disruptions across Finnair's European network.

The situation began improving over the weekend as Finnair started installing new seat covers on the grounded aircraft. The first A321 returned to service on Sunday, operating a flight from Helsinki to Rhodes. However, seven aircraft remain out of service with no confirmed timeline for their full return. The A321s typically seat approximately 200 passengers and are crucial for Finnair's European route operations.

The grounding has resulted in significant passenger disruptions, with Finnair implementing extensive rebooking procedures. On Sunday alone, approximately 460 passengers were moved to different flights due to aircraft downgrades. The airline has prioritized high-frequency routes such as Helsinki-Stockholm and Helsinki-London, ensuring alternative options are available. In some cases, Finnair has used smaller replacement aircraft and offered incentives for volunteers to switch flights.

To manage the capacity shortfall, Finnair has wet-leased two aircraft with crews from Danish carrier DAT since Wednesday. While flight cancellations have decreased to single digits in recent days, with some days passing without any cancellations, the airline acknowledges that irregularities may continue through the coming week. Finnair is providing accommodation and compensation to affected passengers in accordance with EU air passenger rights regulations as it works to fully resolve the operational challenges.