Asiana Airlines to Sell Cargo Business to Air Incheon Amid Merger with Korean Air
Deal News | Feb 25, 2025 | EIN
Asiana Airlines has agreed to sell its cargo business to Air Incheon, aligning with international regulatory requirements, including those from the European Commission, in connection with its merger with Korean Air. The deal, which is valued at 470 billion won, includes the transfer of 11 cargo aircraft and approximately 800 employees by June 10. The transaction was agreed upon after regulatory bodies stipulated the divestment to maintain market competition in light of the merger. Asiana has been communicating the details and implications of this sale to its workforce through meetings and sessions. Air Incheon, a prominent player in the cargo logistics sector, is set to benefit from this acquisition by enhancing its operational capabilities.
Sectors
- Aviation and Aerospace
- Logistics and Freight
- Regulatory Compliance
Geography
- South Korea – Both Asiana Airlines and Air Incheon are based in South Korea, and the merger involves major South Korean airline companies.
- Europe – The European Commission's involvement indicates an important geographic scope for regulatory compliance.
- Japan – The Japan Fair Trade Commission's involvement as one of the regulators ensuring compliance with international trade laws broadens the geographic relevance.
Industry
- Aviation and Aerospace – The article involves major airlines and touches on aircraft fleet and employee transfers, central to the aviation industry.
- Logistics and Freight – Air Incheon specializes in cargo transport, which is a key area within logistics and freight industries.
- Regulatory Compliance – The article deals with compliance to international body conditions as part of a larger merger deal.
Financials
- 470 billion won – Value of the transaction involving the sale of Asiana's cargo business to Air Incheon.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Asiana Airlines | Target Company | Company | A major South Korean airline engaged in a merger with Korean Air and selling its cargo business. |
| Air Incheon | Buying Company | Company | A South Korean airline specializing in cargo transport purchasing Asiana's cargo business to expand its operations. |
| Korean Air | Merged Company | Company | South Korean airline involved in a merger with Asiana Airlines. |
| European Commission | Regulatory Body | Government | EU body that set conditions for the Asiana-Korean Air merger, including the sale of Asiana's cargo business. |
| Japan Fair Trade Commission | Regulatory Body | Government | Participatory regulatory authority ensuring fair trade practices are maintained in the merger. |
| T'way Air | Other Company | Company | Received Asiana's European passenger routes as part of the regulatory compliance conditions. |