Korean Air has announced the selection of South Korean cargo carrier Air Incheon as the preferred bidder to purchase Asiana Airlines' global cargo freighter business.
Korean Air has announced the selection of South Korean cargo carrier Air Incheon as the preferred bidder to purchase Asiana Airlines' global cargo freighter business.
The announcement was made by the Seoul-based carrier following a meeting of its Board of Directors held on June 17, as part of a condition to gain approval for its proposed merger with Asiana Airlines with the European Commission.
“The preferred bidder was selected through a comprehensive evaluation of all factors crucial to the growth of the air cargo industry, a key national industry, while maintaining the existing competitive environment,” said a Korean Air representative. “We are committed to quickly finalizing the sales process through flexible negotiations, and completing the acquisition of Asiana Airlines.”
According to Korean Air, Air Incheon was selected based on several key criteria – the certainty of completing the transation, the ability to maintain and enhance long-term competitiveness of the air cargo business, and the capability to mobilize funds through a competent consortium.
Korean Air plans to sign a framework agreement with Air Incheon in July following the agreement on the contract conditions. The agreement is subject to review by the European Commission.
In addition to gaining approval from European regulators, Korean Air is also working to get approval for the merger with the US government.
Founded in 2012, Air Incheon is a dedicated cargo-only airline based at Incheon, South Korea. With a fleet of four Boeing 737-800 Freighters, it operates cargo flights to five destinations
According to Korean Air, Air Incheon is expected to strengthen its competitiveness by using Asiana's long-haul network to the Americas and Europe, and fleet of larger cargo aircraft.
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