Korean Air has reached an agreement with Air Incheon regarding the sale of Asiana’s cargo unit, which is expected to be split off after Korean takes over Asiana.
The Korean Air-Asiana merger process is spawning significant opportunities for other carriers thanks to competition remedies required by overseas regulators.
Korean Air has agreed to sell off Asiana Airlines' cargo business and support T'Way's European expansion to secure approval from Brussels for the takeover.
The Asiana board says it will meet again in November, after an Oct. 30 meeting about Korean Air’s proposal did not produce a decision on the freighter sell-off.
South Korean LCC T’Way Air could play a role in Korean Air’s proposal to ease concerns from European regulators about the merger of Korean Air and Asiana.
Before the announcement, Asiana Pilots Union members had been engaging in a work-to-rule campaign, and had recently announced an indefinite strike from July 24.
The EC has concerns about the proposed merger’s effect on competition on certain routes between South Korea and Europe that are served by both carriers.
