Asiana Airlines Likely to Discuss 'Cargo Business Sale' as Early as the End of This Month

Measures for EU, US, and Japan Approval

Asiana Airlines is expected to hold a board meeting as early as the end of this month to discuss the sale of its cargo business division in relation to the corporate merger with Korean Air. This move aims to secure approvals from the European Union (EU), the United States, and Japan.

[Image source=Yonhap News]

EU competition authorities have expressed concerns about potential restrictions on competition in cargo routes resulting from the merger of the two airlines. Industry insiders have anticipated the sale of Asiana Airlines' cargo business division. Asiana Airlines stated that no decisions have been made yet regarding the holding of the board meeting or its agenda. Approval from at least four of the six board members is required, but there are reportedly differing opinions within the board.

Korean Air may propose to the EU Commission a corrective measure plan that involves first completing the corporate merger with Asiana Airlines and then proceeding with the sale of Asiana Airlines' cargo business. Additionally, there is a possibility of relinquishing overlapping routes operated by both airlines departing from Incheon to Paris, Frankfurt, Rome, and Barcelona. Furthermore, the plan may include transferring Asiana Airlines' cargo business and overlapping European routes not to foreign airlines but to domestic low-cost carriers (LCCs).