Asiana Airlines To Sell Cargo Division

Asiana Airlines and Korean Air are working toward a merger agreement. However, they have experienced hurdles.

Because of the many changes set to affect the companies, Asiana Airlines will look to sell its existing cargo business.

Why Will Asiana Sell The Cargo Division?

Asiana Airlines believes selling its cargo division will be a significant step toward obtaining approval for a merger with Korean Air.

While the jury is out on whether this will positively impact the two major airlines’ plans, it’ll no doubt be a required step.

Currently, the pair are seeking approval from relevant authorities, which can be tricky for any merger.

Korean Air said that, following Asiana’s decision, it submitted a package of remedies to the European Commission.

Despite the agreement to sell the cargo division to boost efforts to complete a tie-up, a long road remains.

Ultimately, Korean Air and Asiana Airlines still require regulatory approval from several vital bodies.

The pair will need to find ways to appease these regulators to gain approval.

Regulators will keep the mergers under scrutiny as they look for critical flaws in the proposed tie-ups.

A key consideration is how the proposed deal will affect competitors and airlines’ ability to offer robust service.

Korean Air and Asiana Airlines coming together would create one of the world’s largest carriers.

Asiana Airlines Cargo consists of Boeing 747 Freighters and a lone 767 Freighter.

The Boeing 747F makes up the bulk of its freighter fleet, with ten currently active units.

These Boeing 747s average 6.9 years old, with the lone 767 freighter at 27.2 years.