SEOUL, Oct. 30 (Yonhap) — Asiana Airlines Inc., South Korea’s second-largest air carrier, is set to decide on Monday whether to sell its cargo business, as Korean Air Co. attempts to win approval from European Union regulators for its proposed takeover.
The European Commission (EC), the EU’s executive body, has raised questions over the potential impact on competition in the markets for passenger and cargo air transport services between the EU and South Korea.
The board meeting scheduled for the afternoon is expected to be closely watched by stakeholders, as the outcome could make or break the acquisition deal that has been in the works for the past three years.
Korean Air, the larger of South Korea’s two full-service airlines, also plans to hold its own board meeting Monday to discuss proposed solutions to address the EC’s concerns. In a statement sent to Yonhap News Agency, Korean Air said it is “working closely with the EC and will submit formal remedies by the end of the month as requested by the authority to address the concerns.”
Korean Air is believed to be planning to include the sale of Asiana’s cargo business and the divestment of landing slots for four European cities in its remedies. It has also reportedly decided to retain the workers of Asiana Airlines, provided that Asiana agrees to sell its cargo division for the takeover to be approved by EU regulators.
Unionized workers at Asiana Airlines have expressed opposition to such a move, citing fears of possible layoffs.
odissy@yna.co.kr
(END)
This file photo from June 7, 2023, shows an Asiana Airlines plane taking off from Incheon International Airport, west of Seoul. (Yonhap)