SOUTH Korean budget airline air Incheon has been named as the preferred bidder to buy Asiana Airlines' cargo business, Korean Air said, paving the way for a final go-ahead from the EU competition regulator of Korean Air-Asiana merger.
Korean Air, South Korea's biggest carrier, is set to acquire nearly two-thirds of Asiana for about US$1.4 billion, but anti-trust authorities from the European Union stipulated that Asiana's cargo business must be sold before they will give a full approval.
South Korea-based airlines Eastar Jet, Air Premia and Air Incheon had in April all reportedly submitted bids to acquire the cargo business, but Air Incheon was selected as the primary candidate at Korean Air's board of directors meeting held on June 17, according to a press release by Korean Air.
Asiana Airlines' cargo business is being sold at an estimated price of $219-$364 million, reports London's Air Cargo News.
Korean Air said it had picked Air Incheon as the preferred bidder based on the certainty of completing the transaction, the ability to maintain and enhance long-term competitiveness of the air cargo business and the capability to mobilize funds through a competent consortium.
Korean Air plans to sign a framework agreement with Air Incheon in July after agreeing on the contract conditions. The agreement is subject to review by the European Commission.
'The preferred bidder was selected through a comprehensive evaluation of all factors crucial to the growth of the air cargo industry, a key national industry, while maintaining the existing competitive environment,' said a Korean Air representative. 'We are committed to quickly finalizing the sales process through flexible negotiations and completing the acquisition of Asiana Airlines.'
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Korean Air, South Korea's biggest carrier, is set to acquire nearly two-thirds of Asiana for about US$1.4 billion, but anti-trust authorities from the European Union stipulated that Asiana's cargo business must be sold before they will give a full approval.
South Korea-based airlines Eastar Jet, Air Premia and Air Incheon had in April all reportedly submitted bids to acquire the cargo business, but Air Incheon was selected as the primary candidate at Korean Air's board of directors meeting held on June 17, according to a press release by Korean Air.
Asiana Airlines' cargo business is being sold at an estimated price of $219-$364 million, reports London's Air Cargo News.
Korean Air said it had picked Air Incheon as the preferred bidder based on the certainty of completing the transaction, the ability to maintain and enhance long-term competitiveness of the air cargo business and the capability to mobilize funds through a competent consortium.
Korean Air plans to sign a framework agreement with Air Incheon in July after agreeing on the contract conditions. The agreement is subject to review by the European Commission.
'The preferred bidder was selected through a comprehensive evaluation of all factors crucial to the growth of the air cargo industry, a key national industry, while maintaining the existing competitive environment,' said a Korean Air representative. 'We are committed to quickly finalizing the sales process through flexible negotiations and completing the acquisition of Asiana Airlines.'
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