Asiana Airlines has received final shareholder approval to sell its cargo business to Air Incheon, fulfilling all conditions set by European competition regulators for its merger with Korean Air, the company announced Tuesday.
The approval finalizes the January agreement to divest the cargo business for approximately 470 billion won ($328 million).
In February last year, the European Commission required Korean Air to transfer its European passenger routes — Paris, Rome, Frankfurt and Barcelona — and mandated Asiana Airlines to divest its cargo business as conditions for approving the merger. The passenger routes were handed over to T’way Air, a local budget carrier, and with the latest shareholder approval, the formal process for selling the cargo division is now complete.
The airline aims to finalize the transfer of assets and personnel by June 10. The transaction includes: 10 Boeing 747 freighters, one Boeing 767 freighter and approximately 800 employees.
Asiana Airlines' cargo division began operations in November 1994 with its first freighter service on the Seoul-Los Angeles route. Currently operating 12 freighters, the division has played a crucial role in Korea’s import and export logistics for over 30 years. During the COVID-19 pandemic, the airline repurposed idle passenger aircraft to transport medical supplies and vaccines.
In 2023, the cargo division recorded a 7 percent year-over-year revenue increase, reaching 1.71 trillion won, with an annual freight volume of 831,278 tons.
"We will strengthen our remaining passenger transport business with greater specialization, enhance financial stability through the proceeds from the sale, and ultimately improve operational efficiency," an Asiana Airlines official said. "We will also continue engaging with employees transferring to Air Incheon to ensure a seamless transition."
hykim@heraldcorp.com
