Asiana Airlines board decides to sell off cargo unit -Yonhap (updated)

ASIANA AIRLINES

02/11/2023 03:25

(Recasts with Yonhap report on board decision, updates shares)
       SEOUL, Nov 2 (Reuters) - The board of South Korea's
Asiana Airlines  020560.KS  agreed on Thursday to sell its cargo
service, helping clear the way for a proposed merger with Korean
Air Lines  003490.KS , news agency Yonhap reported.
        Selling Asiana's air cargo business and divesting routes
to some European Union cities is a remedy prepared by Korean
Air, South Korea's biggest carrier, to gain EU antitrust
approval for acquiring its rival.
    Korean Air is expected to submit a package including the
proposed sell off of the cargo operation to the European
Commission as soon as Thursday, according to the Yonhap report.
    However, Korean Air's acquisition plan still needs approval
from the EU, the United States and Japan.
    Asiana could not immediately be reached to confirm the
report.
    Asiana creditors, including state-run lender Korea
Development Bank, have been looking for a new owner of the
debt-laden carrier for several years. Korean Air agreed to
acquire Asiana in 2020 during the COVID-19 pandemic.
    As of the first half of 2023, Asiana operated 11 cargo
planes according to a company filing. The cargo service has 21
routes to 25 cities in 12 countries around the world, including
the United States, Germany and Russia. It held a 20.7% share of
South Korea's overseas cargo market. 
    Shares in Asiana were trading up 5.90%, versus the benchmark
KOSPI's  .KS11  1.64% rise as of 0312 GMT. 

 (Reporting by Joyce Lee and Heekyong Yang
Editing by Ed Davies)
 ((Heekyong.Yang@thomsonreuters.com;))