South Korea's Air Incheon is preferred bidder for Asiana cargo unit (updated)

ASIANA AIRLINES

17/06/2024 04:32

(Adds details, comment from regulatory filing in paragraph 3
and background)
       SEOUL, June 17 (Reuters) - South Korean budget airline
Air Incheon is the preferred bidder to buy Asiana Airlines'
 020560.KS  cargo business, Korean Air  003490.KS  said on
Monday, paving the way for a final go-ahead from the EU
competition regulator of a Korean Air-Asiana merger. 
    Korean Air, South Korea's biggest carrier, is set to
purchase nearly two-thirds of Asiana for about $1.4 billion, but
anti-trust authorities from the European Union stipulated that
Asiana's cargo business must be sold before they will give a
full approval.
        Air Incheon has priority in negotiations until July 15,
Korean Air said in a regulatory filing on Monday. 
        An acquisition of the cargo unit would encompass
Asiana's freighter aircraft, airport slots, employees and
contracts, the EU has said. 
        Asiana operates 11 Boeing 767 and Boeing 747 cargo
planes on 21 routes to 25 cities in 12 countries, including the
United States, Germany, Italy, Belgium and Britain.
        Korean Air has obtained a green light from competition
authorities for the Asiana deal in 13 of 14 jurisdictions. It is
still awaiting a U.S. decision, which CEO Walter Cho has said he
is confident will be completed by the end of the year.
        
  

 (Reporting by Jack Kim and Lisa Barrington; Editing by Clarence
Fernandez and Sherry Jacob-Phillips)
 ((jack.kim@thomsonreuters.com; +822 6936 1455;))