Korean Air Signs 470 Billion KRW Contract to Sell Asiana Cargo to Air Incheon

Conditions Set by EC Met... Only Awaiting Approval from US Authorities

Korean Air has signed a contract to sell Asiana Airlines' cargo business to Air Incheon. This is expected to accelerate the corporate merger between Korean Air and Asiana Airlines.

On the 7th, Korean Air announced that it had signed a basic agreement for the sale of Asiana Airlines' cargo business with Air Incheon. The sale price is 470 billion KRW.

Previously, Korean Air pursued the sale of Asiana Airlines' cargo division to meet the corporate merger conditions set by the European Commission (EC) and the Japan Fair Trade Commission. In this process, Air Incheon was selected as the preferred bidder on June 17, beating Eastar Jet and Air Premia. Although smaller in scale, Air Incheon was recognized as the only domestic cargo-specialized airline with over 10 years of experience.

Since the contract has been signed, Korean Air plans to obtain final approval from the EC. A Korean Air representative stated, "After signing the basic sale agreement, we will undergo buyer review by the EC," adding, "After EC approval, we will finalize the new share subscription contract transaction with Asiana Airlines."

In fact, the corporate merger between Korean Air and Asiana Airlines is only awaiting approval from the United States. Cho Won-tae, Chairman of Korean Air, forecasted at the International Air Transport Association (IATA) annual general meeting held in Dubai, United Arab Emirates, in June, "We expect to receive final approval from U.S. authorities by the end of October this year."

[Image source=Yonhap News]

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