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Asiana Approves Sales of Cargo Division to Ease Korean Air Merger

Written: 2023-11-02 14:29:12Updated: 2023-11-02 15:04:25

Asiana Approves Sales of Cargo Division to Ease Korean Air Merger

Photo : YONHAP News

Asiana Airlines approved the sale of the company’s cargo business to facilitate the merger with the country’s top carrier, Korean Air, in the face of antitrust concerns by European Union regulators.

According to industry sources, Asiana Airlines’ board of directors approved the sale three days after they failed to reach a compromise amid disagreements over the sell-off of the cargo division, with a rejection potentially jeopardizing the deal.

The latest decision comes amid concerns by the European Commission that Korean Air’s takeover of Asiana may restrict competition in the markets for passenger and cargo air transport services between South Korea and the EU.

The nation’s largest carrier is soon expected to submit formal remedies to the regulator and is expected to include Asiana’s plan to sell its cargo business as well as relinquishment of landing slots for four European cities.

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