Publicado: 16/11/2020

Korean Air to take over troubled Asiana Airlines for $1.6 bn

Korean Air to take over troubled Asiana Airlines for $1.6 bn

Seoul (AFP) -

South Korean flag-carrier Korean Air said Monday it will buy out its smaller troubled rival Asiana Airlines in a $1.6 billion deal as it looks to consolidate with the coronavirus pandemic sending shockwaves through the global aviation sector.

Worldwide travel restrictions imposed to prevent the disease from spreading have wreaked havoc on the airline industry, hammering Asiana which was already in trouble.

'The main reason behind Korean Air's decision to acquire Asiana Airlines at this time is to stabilize the Korean aviation industry, which is suffering from the Covid-19 pandemic,' Korean Air said in a statement.

'Once Korean Air completes its acquisition of Asiana Airlines, the airline is expected to be ranked as one of the top 10 airlines in the world.'

Korean Air said it would pay 1.8 trillion won for Asiana, using cash from a 2.5 trillion won rights issue early next year.

The deal also includes Asiana's affiliates, including low-cost carriers Air Seoul and Air Busan.

'Considering that Korean Air?s financial status could also be endangered if the COVID-19 situation is prolonged, it is inevitable to restructure the domestic aviation market to enhance its competitiveness and minimize the injection of public funds,' the Korean Air statement added.

Asiana has long been plagued by financial problems prompting parent company Kumho Industrial to put its 31 percent stake up for sale last year as it came under pressure from its creditors.

A previous deal for a South Korean builder, HDC Hyundai Developer, to acquire Asiana collapsed in September as the pandemic tore through the aviation industry.

Asiana reported operating losses of 268 billion won in the first six months of this year -- with its debts soaring to 11.5 trillion won.

Más en Zeta

¿Quieren  inscribirse?

¿Quieren inscribirse?

20 November 2020
En el Tribunal Electoral reposa la solicitud de un grupo denominado Partido Torrijista Revolucionario (PTR) que quiere iniciar su proceso de inscripción. Típico con la armónicaEl periodista Valerio Ábrego Jiménez, con motivo de las fiestas patrias, interpretó varias piezas musicales panameñas co...

La inversión extranjera, un ingrediente clave para la recuperación

ZETA, (JEAN PIERRE LEIGNADIER*).- Se ha iniciado un proceso de reapertura económica en el cual todos los sectores productivos del país deben trabajar de manera sostenida hacia la recuperación y reactivación; paralelamente hay que dar pasos firmes y certeros para fortalecer y proyectar las ventaja...

Planificación turística frente a nuevos retos y oportunidades

ZETA, (JEAN PIERRE LEIGNADIER).- Las actividades turísticas en el país reabren a partir de esta semana con el reto de reactivar este importante componente de la economía nacional. Al sector turismo le tomará más tiempo en recuperarse que otras actividades a nivel mundial; no obstante, hay que ac...

Explosivo debut al bate tuvo el novato Jordán Agrazal

ZETA, (HARMODIO ARROCHA JR).¿Qué me gustó de la apertura del torneo nacional de béisbol mayor 2020?. Lo bueno...El feroz despegue de la liga con la pólvora encendida y sobre todo buen pitcheo. A la ofensiva brilló el novato coclesano Jordán Agrazal, quien fue el héroe en el triunfo de Coclé por...

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.