Asiana backs sale of cargo unit, removing hurdle to Korean Air merger

said on Thursday its board had approved the sale of the company’s cargo business – an important step towards allaying EU competition concerns about a proposed takeover by Korean Air Lines

Korean Air, the country’s biggest carrier, said in a statement following the decision that it had submitted a package of remedies to the European Commission – remedies that also include it divesting routes to some European Union cities.

“While Korean Air continues its efforts to secure the approval from the European Commission, the airline will also communicate closely with the remaining regulatory bodies to finalize the approval process as quickly as possible,” Korean Air said in a statement.

Korean Air also said it will buy 300 billion won ($220 million) of convertible bonds issued by Asiana, part of fresh financial support to the smaller airline. Asiana creditors, including state-run lender Korea Development Bank, have been looking for a new owner for the debt-laden carrier for several years. Korean Air agreed to acquire Asiana in 2020.

As of end-June, 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 market for overseas cargo.

Shares in Asiana reversed earlier gains to trade down 7.4% following the news, underperforming a 1.7% rise for the benchmark KOSPIShell Pakistan on Wednesday said its parent company’s unit, Shell Petroleum Company, has signed a deal with Wafi Energy to sell the domestic operations.

Asiana Airlines board meets again to decide on sale of cargo unitAsiana Airlines board meets again to decide on sale of cargo unit Read more ⮕

Bold, post-war era South Korean cinema screens at Harvard Film ArchiveCo-curated with the Korea Institute at Harvard, the monthlong series features some of the most notable and provocative South Korean films of the 1950s and 1960s. Read more ⮕

Two South Korean police officers stabbed outside presidential compoundSouth Korean authorities on Tuesday detained a man after two police officers were stabbed outside a compound housing the presidential office in the capital, Seoul, city police said. Read more ⮕

South Korean auto parts maker plans $176M plant in Georgia to supply Hyundai facility, hiring 460Another South Korean auto parts company is set to build a plant in Georgia, investing more than $176 million. Hwashin Co. says Tuesday that it would build a plant in the town of Dublin and hire more than 460 employees. It plans to start production in 2025. Read more ⮕

8th annual Air University LREC Symposium Nov. 15-17 at Maxwell Air Force BaseAir University to hold LREC Symposium this month. Read more ⮕

Michael Mann To Adapt Korean Thriller Veteran As Next Movie Despite Heat 2 DevelopmentDirector Michael Mann is set to adapt the South Korean thriller Veteran as his next movie, despite another film, Heat 2, currently in development. Read more ⮕