Four LCCs Selected as Qualified Bidders for Asiana Airlines Cargo Business

Jeju Air·Air Premia·Eastar Jet·Air Incheon

Jeju Air, Air Premia, Eastar Jet, and Air Incheon, four low-cost carriers (LCCs), have been selected as qualified acquisition candidates (shortlist) for Asiana Airlines' cargo division.

According to industry sources on the 5th, UBS, which is in charge of managing the sale of Asiana Airlines' cargo division, notified the four LCCs of their shortlist selection this morning. These companies had submitted letters of intent (LOI) for the preliminary bidding of Asiana Airlines' cargo business sale at the end of last month.

Korean Air and UBS plan to conduct on-site due diligence with these candidates for about a month and select the final buyer within the first half of the year. This is because the sale of the cargo division is essential for Korean Air to acquire Asiana Airlines.

Earlier, the European Union (EU) Commission approved the merger of the two companies on the condition that Korean Air implements corrective measures, including the sale of Asiana Airlines' cargo business, last month.

Asiana Airlines' cargo division currently operates a total of 11 cargo aircraft, including 8 owned freighters and 3 leased freighters. Last year's revenue was approximately 1.6071 trillion KRW. Among the 11 cargo aircraft, 10 are aging models over 20 years old, so significant replacement costs are expected in the future.

A board meeting is scheduled to discuss the sale of Asiana Airlines' cargo business in relation to the merger of Korean Air and Asiana Airlines. The photo shows the Asiana Airlines hangar set up at Gimpo Airport in Gangseo-gu, Seoul, on the 2nd. Photo by Jinhyung Kang aymsdream@