Asiana Airlines and Korean Air are working towards tying up a merger agreement. However, they have experienced hurdles.
As a result of the many changes set to impact the companies, Asiana Airlines will look to sell the company’s existing cargo business.
Why Will Asiana Sell The Cargo Division?
Asiana Airlines believes that selling its cargo division will represent a significant step in looking ahead to obtain approval for a merger with Korean Air.
While the jury is out on whether this will positively impact the plans the two major airlines have, it’ll no doubt represent a required step.
Currently, the pair are seeking approval from relevant authorities, which for any merger can prove tricky at times.
Korean Air said following Asiana’s decision, and it submitted a package of remedies towards the European Commission.
Still A Long Road Ahead
Despite the agreement to sell the cargo division to boost the efforts of completing a tie-up, there’s still a long road ahead.
Ultimately, Korean Air and Asiana Airlines still require regulatory approval from several vital bodies.
It’ll be necessary for the pair to find ways to appease these regulators to gain approval.
Mergers will constantly come under a close microscope as regulatory bodies attempt to identify critical flaws in the proposed tie-ups.
A significant consideration is how the proposed deal will impact competitors and the ability of airlines to offer a robust service.
Korean Air and Asiana Airlines coming together would create one of the largest carriers in the world.
Asiana Cargo Fleet
Asiana Airlines Cargo consists of Boeing 747 Freighters and a lone 767 Freighter.
The Boeing 747F comprises the bulk of freighters within its operation, with ten currently active units.
These Boeing 747s have an average age of 26.9 years, with the lone 767 freighter at 27.2 years.