Korean Air Begins Process of Asiana Cargo Sell-Off

It has been revealed that Korean Air has begun the process of selling off the cargo wing of Asiana Airlines to meet the relevant conditions for merger approval.

As per reporting from AeroTime, it is understood the Korean carrier wants this completed by October of this year.

Without further ado, let’s get into it…

Korean Air Begins Process of Asiana Cargo Sell-Off…

The sell-off of Asiana Cargo by Korean Air looks to be a very quick process indeed, with interested parties told to hand in proposals by the end of February this year.

It is understood also that UBS has been appointed to handle the sale of the freighter wing of the airline.

Such conditions for merger approval were laid out by the European Commission, who gave the tentative green-light earlier this month, subject to the following conditions:

Cargo commitments: Korean Air will divest Asiana’s global cargo freighter business. The divestment includes freighter aircraft, slots, traffic rights, flight crew, and other employees, as well as customer cargo contracts, among others. Korean Air can only implement the acquisition of Asiana following the Commission’s approval of a suitable buyer for the cargo divestment. Among other requirements, the buyer must be able and have the incentives to operate the divested business in a viable manner and to compete effectively with the merged company.

All eyes will be on who will secure the cargo wing of Asiana Airlines, as there will be a lot to benefit from this transaction.

But what remains clear is that Korean Air is putting out all of the stops to ensure they are compliant with the regulations set out so then they can get this merger finalised as quickly as possible.