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On Thursday, November 2, the board of Asiana Airlines Inc., South Korea’s second-largest air carrier, voted in favor of a plan to sell its cargo business. This move is part of Korean Air’s efforts to gain antitrust approval from the European Commission (EC) for its acquisition of the rival.
The board approved the cargo business sale plan in a 3-1 vote, with one abstention, among the five-member board of directors. This decision comes three days after the board was unable to reach a conclusion due to disagreements regarding the sell-off.
The EC has expressed worries that the merger of Korean Air and Asiana may limit competition in the markets for passenger and cargo air transport services between the EU and South Korea.
Korean Air is expected to submit the approved cargo business sale plan and divestment of landing slots for four European cities to the EC shortly. Nevertheless, even if the board approves the sale, the merger is not guaranteed to be given immediate approval.
Korean Air has received approval from 11 countries, such as Britain, Australia, and Singapore, but is yet to receive approval from the EU, the United States, and Japan.
Despite Asiana’s cargo business sale decision, Korean Air still faces an uphill battle in completing the merger deal, as the U.S. Department of Justice is reportedly considering suing to block the deal due to competition reasons in the U.S. market.
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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