Air Incheon gains support for Asiana cargo bid

Air Incheon’s plan to acquire Asiana Airlines’ cargo business is gaining momentum with reports that Hyundai Glovis may invest in a consortium led by the airline.

Republic of Korea (ROK)-based logistics company Hyundai Glovis said it is considering an investment after Air Incheon was named as the preferred bidder for Asiana Airlines’ cargo business in June.

“We are considering joining Air Incheon’s acquisition of Asiana’s cargo business as an investor,” Hyundai Glovis said in a regulatory filing on August 2, according to The Korea Times.

Air Cargo News has reached out to Hyundai Glovis for comment.

Any investment into Asiana by Hyundai Glovis would help the company further diversify into air cargo, adding to its global logistics and ocean shipping services. The company said on its website that it currently has an air export/import volume of 64,468 tons.

In 2022, it signed an agreement to build and operate a logistics centre at Incheon International Airport, due to be completed next year.

ROK-based Air Incheon was named by Korean Air as the preferred bidder for the sale of Asiana’s cargo business two month’s ago as part of Korean Air’s acquisition of Asiana.

The cargo business is being sold, at an estimated price of $219-$364m, in order for Korean to secure regulatory approval to acquire Asiana.

Korean was due to sign a framework agreement with Air Incheon in July after agreeing on the contract conditions. The agreement is subject to review by the European Commission.

Korean first announced its plan to acquire Asiana in November 2020, but the acquisition proceedings were delayed by the Covid pandemic and resulting disruption in the airline industry.

Then last year, the plan sparked concern by the European Commission, which said the takeover would result in reduced competition between Europe and South Korea because the two carriers dominate the long-haul market to and from South Korea. Korean also struggled to gain approval for the deal in Japan and the US.

To secure regulatory approval from Brussels for the move, Korean offered to sell Asiana Airlines’ cargo business in October 2023.

In December, European Union competition regulators set a February 2024 deadline to review Korean Air’s proposed acquisition of Asiana Airlines after the two airlines resubmitted their plans to EU antitrust regulators.

Korean Air said in January that it expects to complete the acquisition of Asiana Airlines this year.

Korean picks Air Incheon as preferred Asiana Cargo bidder