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European Union

Asiana Airlines to Decide on Cargo Business Sale Later This Month Amid Korean Air Takeover

Strategic Insights

— 1 min read

Seoul-based Asiana Airlines Inc., the country's second-largest air carrier, is set to hold a crucial board meeting on October 30 to decide on the sale of its cargo business. This meeting comes as Korean Air, Asiana's rival, seeks to win antitrust approval from European Union regulators for its acquisition of Asiana. The EU has raised concerns that the merger may restrict competition in the markets for passenger and cargo air transport services between the EU and South Korea.

Key Takeaways:

  • Asiana Airlines is planning to sell its cargo business, with a board meeting scheduled for October 30 to make a decision.
  • The sale is part of the company's efforts to comply with European Commission regulations and address concerns about the potential impact of the Korean Air acquisition on competition.
  • Korean Air has received acquisition approvals from 11 countries, including Britain, Australia, Singapore, Vietnam, Turkey, and China, but is still awaiting decisions from Japan, the EU, and the United States.
  • Unionized workers at Asiana Airlines have expressed opposition to the sale of the cargo division, citing concerns about possible layoffs following the sale.
  • A representative from Asiana Airlines stated that the company was unable to comment on the matter, as the acquisition deal was being handled by Korean Air.
  • Korean Air plans to submit formal remedies to address concerns raised by the European Commission by the end of October.

Statistics:

  • Asiana Airlines' cargo business sale is expected to be a crucial decision, potentially affecting the company's future and the outcome of the Korean Air acquisition.
  • 6 members of Asiana Airlines' board of directors are reviewing various aspects of the sale, with opinions among board members reportedly mixed.
  • Asiana Airlines has two unions, with the larger union planning to hold a press conference in Seoul on November 7 to protest the proposed sale of the cargo business.

Sources:

  • Yonhap News Agency, "Asiana Airlines to Decide on Cargo Business Sale Later This Month Amid Korean Air Takeover"
  • Korean Air, statement sent to Yonhap News Agency

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