S.Korea's Asiana Airlines to suspend 3 air routes to boost profitability (updated)

Kumho Engineering & Construction

07/05/2019 04:34

(Adds detail and background)
    SEOUL, May 7 (Reuters) - South Korea's Asiana Airlines
 020560.KS  said on Tuesday it planned to suspend three
international air routes, starting early July, to boost
profitability at a time when the cash-strapped carrier seeks a
change in leadership.
    The three routes include flights from South Korea to two
Russian cities and an Indian city, the airline said in a
statement.    
    Kumho Industrial Co Ltd  002990.KS , the top shareholder of
Asiana Airlines, said last month it would sell its entire stake
in debt-laden Asiana and later hired Credit Suisse to manage the
stake sale.  urn:newsml:reuters.com:*:nL3N21X0EY urn:newsml:reuters.com:*:nS6N211009
    Asiana has already sold assets to improve cash flow and
reduce debt from aircraft purchases, as it battles rising fuel
costs and competition from low-cost carriers.
    As part of its cost-cutting efforts, South Korea's
second-biggest airline had said it would halt operations of its
first-class seats starting September, but instead offer cheaper
premium seats called Business Suite.  urn:newsml:reuters.com:*:nL3N21F1DH
    The airline's creditors have said it would provide 1.6
trillion won ($1.37 billion) in financial support to the
airline, alleviating liquidity problems.  urn:newsml:reuters.com:*:nL3N2243Z7
    In March, auditors raised doubts about Asiana's financial
statements, after which the airline reported steeper losses and
bigger debts, triggering warnings of credit-rating downgrades.
Co-Chief Executive Park Sam-koo resigned to take responsibility.
 urn:newsml:reuters.com:*:nL3N2190MZ urn:newsml:reuters.com:*:nL3N21F1DH
    
    ($1 = 1,168.7000 won)

 (Reporting by Heekyong Yang, Editing by Sherry Jacob-Phillips)
 ((Heekyong.Yang@thomsonreuters.com; +82 2 3704 5647; Reuters
Messaging: heekyong.yang.thomsonreuters.com@reuters.net))