Asiana Airlines has obtained final shareholder consent to divest its cargo business to Air Incheon. This transaction fulfills a condition imposed by European competition authorities for the merger with Korean Air.
The sale, valued at approximately 470 billion won ($328 million), was initially agreed upon in January. It represents a step toward finalizing the merger process.
The European Commission required Korean Air to divest Asiana's cargo division and transfer certain European passenger routes to T'way Air. These routes include Paris, Rome, Frankfurt, and Barcelona.
Following shareholder approval, the formal process for the cargo sale is complete. The transition, set to conclude by June 10, involves Air Incheon acquiring 10 Boeing 747 freighters, one Boeing 767 freighter, and about 800 employees.
Asiana's cargo operations have been integral to South Korea's logistics network since 1994 when it launched its first freighter service between Seoul and Los Angeles. During the COVID-19 pandemic, the division supported global supply chains by repurposing passenger aircraft for cargo transport.
In 2023, the cargo unit posted a 7% revenue increase, generating 1.71 trillion won, with an annual freight volume of 831,278 tons.
With the cargo sale finalized, Asiana Airlines progresses toward its integration with Korean Air, impacting South Korea's aviation sector.
Source: CA&AS