Korean Air completes Asiana takeover to form one of Asia's biggest airlines

ASIANA AIRLINES

12/12/2024 04:06

Dec 12 (Reuters) - Korean Air  003490.KS  has completed
its protracted purchase of indebted South Korean rival Asiana
Airlines  020560.KS , the airline said on Thursday, a major step
towards forming one of Asia's biggest carriers.
    The 1.8-trillion-won ($1.3 billion) M&A deal, which stands
as one of the longest to completion in the sector, was first
unveiled four years ago by South Korea's largest carrier to
rescue Asiana, grappling with a plunge in demand during the
COVID-19 pandemic.
    Korean Air acquired 131,578,947 newly issued shares in
Asiana on Thursday, for a stake of 63.88% stake in the airline,
which becomes a subsidiary. 
    A new Korean Air group could account for just over half of
South Korea's passenger capacity, and would become the world's
twelfth-largest airline by international capacity, a Reuters
analysis of airline data from Cirium and OAG shows. 
    Korean Air said Asiana's integration would not include
layoffs. 
    "The combined organisation projects natural staff growth
through business expansion, with employees in overlapping
functions being reassigned within the organisation," it said in
a statement.
 

 (Reporting by Lisa Barrington; Editing by Nicholas Yong)
 ((nicholas.yong@thomsonreuters.com;))