As part of its terms to secure approval for its merger with Asiana Airlines by the European Commission (EC), Korean Air has signed a “basic business sale agreement” with cargo airline Air Incheon for Asiana's cargo division
As part of its terms to secure approval for its merger with Asiana Airlines by the European Commision (EC), Korean Air has signed a “basic business sale agreement” with cargo airline Air Incheon for Asiana's cargo division
In a regulatory filing, Korean Air stated the sale agreement was signed on Wednesday (August 7) after reports Air Incheon was named the preferred bidder to take on Asiana's cargo division in June.
The sale transaction – which covers matters such as the structure, schedule, and the conditions of the sale - for the cargo unit is reported to be worth around KRW 470 billion (~USD $344 million). If finalized and completed, Air Incheon will become South Korea's second largest air freight carrier.
Founded in 2012, Air Incheon is a dedicated cargo-only airline based at Incheon, South Korea.
First announced in 2020, Korean Air's proposed acquisition of Asiana has received approvals from competition regulators from 13 out of 14 countries needed for the merger to be finalized. Approval for the merger is still pending in the United States. Korean Air has reported it expects to complete the acquisition by the end of the year.
In February, the EC granted conditional approval for the Korean Air-Asiana merger. Korean Air committed to sell Asiana's cargo unit, and give up flight slots to four destinations in Europe to another South Korea-based airline – T'Way.
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