South Korean budget airlines submit bids for Asiana cargo unit, source says

SEOUL : The sale of Asiana Airways’ cargo industry has attracted presents from four South Korean low-worth carriers, a source with details of the matter said on Wednesday.

Jeju Air, Eastar Jet, Air Premia and Air Incheon all submitted non-binding bids, the source said.

Korean Air, South Korea’s largest provider is determined to aquire nearly two-thirds of Asiana for about $1.4 billion, but EU antitrust authorities bask in stipulated that Asiana’s cargo industry must be supplied before they’ll present the deal their final approval.

Korean Air, Asiana, Air Premia and Eastar Jet declined dispute.

Representatives for Jeju Air and Air Incheon could likely perchance now not be straight reached for dispute.

An acquisition of the cargo unit would embody Asiana’s freighter plane, airport slots, employees and contracts.

Thorny considerations prone to arise in any deal negotiations encompass how grand of Asiana’s debt the purchaser would steal on, how the pricing will judge submit-pandemic drops in freight charges, and the age of Asiana’s like a flash, two other sources with details of the matter said.

All sources were now not accepted to refer to media concerning the deal and declined to be identified.

Analysts bask in said it’s now not easy to estimate a designate for the unit given the debt self-discipline. Asiana had debt of about 12.7 trillion obtained ($9.5 billion) as of discontinue-September, in line with a firm filing.

Asiana accounts for about a fifth of South Korea’s market for in one other nation air cargo. With 11 cargo planes, it runs 21 routes to 25 cities in 12 countries, including the US, Germany and Russia.

The airline sector has considered a wave of consolidation in recent months, with Lufthansa searching out a 41 per cent stake in Italy’s ITA Airways and British Airways and Iberia owner IAG’s reveal for the final 80 per cent of Spanish provider Air Europa it would now not already maintain.

Korean Air has obtained a green light from competition authorities for the Asiana deal in 13 of 14 jurisdictions. It’s quiet expecting a U.S. resolution.

($1 = 1,336.1100 obtained)