Asiana Airlines' cargo operations to be sold to Air Incheon for 470 billion won

This photo shows flights from Korean Air and Asiana Airlines at Incheon International Airport. Yonhap

SEOUL, August 7 (AJU PRESS) — Korean Air, which is in the process of acquiring Asiana Airlines, said Wednesday that it has signed a master agreement with Air Incheon, a domestic cargo airline, to sell Asiana’s cargo operations for 470 billion won ($341.9 million).

In June, Korean Air named Air Incheon as the preferred bidder for the deal. The European Union's competition regulators required the sale as a precondition for approving the Korean Air-Asiana merger.

In a regulatory filing, Korean Airs said it considered Air Incheon’s reliability in completing the transaction, its ability to maintain and develop long-term business competitiveness, and its capacity to mobilize funds through a competent consortium.

The South Korean flag carrier noted that it had closely discussed the matter with EU regulatory authorities.

The final sale agreement with Air Incheon will be signed after Korean Air completes the merger deal with Asiana.

Korean Air plans to finalize the merger this year. It will undergo an EU review for final approval, which will be followed by a U.S. decision.

Kim Joo-heon jhkim123@ajunews.com

Asiana Airlines' cargo operations to be sold to Air Incheon for 470 billion won

Related