The board of Asiana Airlines has given approval for the sale of its cargo business, a move that comes amid concerns about a potential takeover. This decision reflects the company's strategic efforts to address the challenges it faces in the current market. The sale of the cargo business is part of a larger plan to restructure and strengthen the airline's position in the industry. As Asiana Airlines navigates through this process, it remains committed to maintaining high standards of service and operational excellence for its customers.
The Asiana Airlines board has approved plans to sell its cargo business as part of efforts to appease European regulators concerned over the impact of its takeover by Korean Air.
Approval of Cargo Business Sale
Earlier today, the carrier’s board approved the plan to offload the cargo unit to another Korean airline after the European Commission in May said the takeover would result in reduced competition between Europe and South Korea.
The board had originally been due to make a decision on Monday, but decided more time was needed to discuss the plan.
Regulatory Approval and Hurdles
Korean Air said that it had now submitted its plans to European regulators, which also include the ending of four European routes.
However, the deal still faces further hurdles. The two airlines also require approval from competition authorities in Japan and the US and Korean will need to find a buyer.
However, it has gained approval in Singapore, China and the UK.
Opposition and Concerns
Unions are also thought to be opposed to the deal over fears of job losses.
Operational Details
Korean Air’s network covers 120 cities in 43 countries and it operates an extensive freighter fleet, handling 1.6m tons of cargo internationally and 36,000 tons domestically in 2020.
Asiana Airlines’ international cargo business covers 12 countries, 27 cities and 25 routes and accounts for around 20% of the carrier’s total revenue
According to Airfleets.net, the carrier operates 10 Boeing 747-400 freighters and a single Boeing 767-300 freighter.
Acquisition Background
Korean Air first announced plans to acquire Asiana in November 2020 but the timetable fell victim to the Covid pandemic and resulting turmoil in the airline industry.
Future Plans
According to earlier reports, Korean Air has been in talks with several other carriers to buy the cargo assets.
Summary
As Asiana Airlines progresses with the sale of its cargo business, all eyes are on the developments surrounding this significant acquisition and its implications for the global aviation sector.
(This article is sourced from aircargonews.net curated by Thetransporteronline24)
