On Thursday, the board of Asiana Airlines Inc., South Korea’s second-largest air carrier, gave the green light to a proposal to sell its cargo business. This move is part of Korean Air’s plan to gain antitrust approval from the European Union for its takeover of the rival.
The decision comes three days after the board of directors failed to reach a consensus on the matter due to disagreements.
The European Commission, the EU’s executive body, has expressed worries that the merger between Korean Air and Asiana may limit competition in the markets for passenger and cargo air transport services between the EU and South Korea.
A rejection of the merger could have potentially harmed the prospects of the deal, which has been in the works for the past three years.
Korean Air is expected to soon submit formal remedies to the EC, which may include the sale of Asiana’s cargo business and divesting of landing slots for four European cities.
An Asiana Airlines aircraft takes off at Incheon International Airport, west of Seoul, on Oct. 30, 2023. (Yonhap)
odissy@yna.co.kr
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