Three airlines vying for Asiana Airlines’ cargo business
25 / 04 / 2024
Source: Thanhliemnguyen/Shutterstock
Three low cost airlines are reportedly in the running to buy Asiana Airlines’ cargo business as part of conditions for Korean Air to acquire Asiana Airlines.
Eastar Jet, Air Premia and Air Incheon, all based in the Republic of Korea, have submitted bids in the second round of bidding to acquire the cargo business, according to Reuters’ sources.
Jeju Air said it did not participate in the second round of the acquisition process, despite taking part in the first round of bids.
Sale adviser UBS accepted the second round of bids to buy Asiana Airlines’ cargo business, encompassing Asiana’s 11 freighter aircraft, airport slots, employees and contracts.
The sale price is estimated to be around $219-$364m.
Korean Air first announced its plan to acquire Asiana Airlines 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 for the move, Korean offered to sell Asiana Airlines’ cargo business in October 2023.
Asiana Airlines then delayed a decision on whether to sell its cargo unit as part of its takeover by Korean Air, but in November, the board approved plans.
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.
