Asiana Airlines board to meet again to decide Korean Air merger
ASIANA Airlines said on Tuesday (Oct 31) it would reconvene a board meeting in early November to decide whether it should accept a merger proposal from Korean Air that includes the sale of its cargo operations to remedy EU antitrust concerns.
Asiana’s board did not reach a decision in a meeting on Monday on whether to accept Korean Air Lines’ offer.
Asiana creditors, including state-run lender Korea Development Bank, have been looking for a new owner of the debt-laden carrier for several years. Local rival Korean Air agreed to acquire Asiana in 2020 during the Covid-19 pandemic.
Korean Air’s acquisition plan still needs approval from the European Union, the United States and Japan.
“The board meeting that is now in recess will resume in early November and make a final decision,” Asiana said.
Korean Air, South Korea’s biggest carrier, planned to submit a corrective action plan to the European Commission by the end of October to gain EU approval, but that timeline is no longer possible pending a decision by Asiana’s board.
“We are unable to submit the remedies by the end of October. Korean Air will decide on the new remedy submission date according to the decision of Asiana Airlines’ board of directors,” Korean Air said.
Asiana’s share price rose as much as 14.2 per cent in Tuesday mid-day trade, recovering earlier losses, whereas Korean Air Lines was up 2.5 per cent. The benchmark price index was down 1.3 per cent.
Choi Gowoon, an analyst at Korea Investment & Securities, said investors in Asiana appeared to have more certainty about the fate of the merger deal, as shown by the rise in the price of the shares which had fluctuated in recent days. REUTERS
Share with us your feedback on BT's products and services
