A potential hurdle for the proposed Korean Air-Asiana Airlines merger has been removed after the dismissal of a legal challenge that was filed against the deal.
The COVID-19 crisis is set to spark major consolidation in the South Korean airline industry, with Korean Air planning to purchase struggling rival Asiana Airlines.
Korean Air has managed to buck industry trends by achieving a net profit for the second quarter, thanks mainly to a strong performance by the carrier’s cargo unit.
Korean Air has been cleared to seek additional financing from a new government assistance fund that should help the carrier stay afloat through the COVID-19 crisis.
Korean Air predicts losses seen in the 2020 first quarter (Q1) will continue though the current quarter, although there are some positive signs for passenger demand emerging.
Korean Air has decided on a substantial issue of new shares as part of its efforts to raise KRW2.2 trillion ($1.8 billion) in funds to boost liquidity during the COVID-19 crisis.
Korean Air plans to reinstate some previously suspended domestic flights in May, a sign that domestic demand is beginning to recover from the COVID-19 crisis in South Korea.
Korean Air chairman and CEO Walter Cho has succeeded in repelling a challenge to his leadership from a coalition of shareholder groups allied with his sister Heather Cho.
Korean Air’s parent company Hanjin KAL has hit back with regulatory complaints against two shareholders that are attempting to take over management control of the flag carrier.
Korean Air has begun using grounded Airbus A330 passenger aircraft for some cargo-only flights and intends to extend this initiative to more destinations.