Asiana to sell air cargo unit to Air Incheon for $342 mln (updated)

ASIANA AIRLINES

07/08/2024 08:18

(Adds detail throughout)
       SEOUL, Aug 7 (Reuters) - Asiana Airlines'  020560.KS 
cargo unit will be sold to South Korean cargo carrier Air
Incheon for 470 billion won ($342 million), Korean Air Lines
 003490.KS  said on Wednesday. 
    The EU competition regulator in June approved Air Incheon as
the preferred bidder to buy Asiana's cargo business, as a
condition of approval for Asiana to merge with Korean Air. 
    The purchase will likely make Air Incheon, a small
cargo-only airline, South Korea's second-biggest freight
carrier.
    A sale agreement was signed on Wednesday, according to a
Korean Air filing. 
    The purchase would transfer Asiana's fleet, staff, customers
and traffic rights to Air Incheon, which is based at Incheon
airport, South Korea's main international gateway and the
world's fifth-busiest cargo airport.
    Korean Air, South Korea's biggest carrier, is set to buy
nearly two-thirds of Asiana for about $1.4 billion, but
anti-trust authorities in the European Union want Asiana's cargo
business sold before they give full approval.
    Korean Air had obtained a green light from 13 of 14
competition authorities for the Asiana deal and CEO Walter Cho
has said he anticipates the final U.S. decision by the end of
October.
    
    ($1 = 1,375.8900 won)

 (Reporting by Heekyong Yang; Writing by Lisa Barrington;
Editing by Christian Schmollinger and Christina Fincher)
 ((lisa.barrington@thomsonreuters.com;))