Asiana Airlines has obtained final shareholder approval to sell its cargo division into Air Incheon. This deal fulfills a condition that was imposed by European authorities on competition for joining to Korean Air.

The purchase, estimated at the sum of 470 billion won ($328 million) it was first decided upon in January. It is an important step in concluding the merger procedure.

The European Commission required Korean Air to demolish Asiana’s cargo division as well as move certain European routes for passengers over to T’way Air. The routes included Paris, Rome, Frankfurt and Barcelona.

After shareholder acceptance, the formal procedure to sell the cargo is completed. The sale, which is scheduled to be completed by the 10th of June is a process that involves Air Incheon acquiring 10 Boeing 747 freighters as well as the one Boeing 767 freighter and around 800 workers.

Asiana’s cargo operations have become an integral part of South Korea’s logistics system since 1994, when it began its first freighter service that runs between Seoul as well as Los Angeles. In the COVID-19 outbreak, the department was able to support supply chain networks across the globe through repurposing passenger airplanes to support freight transport.

The 2023 unit for cargo recorded a 7 percent growth in revenue, and generated 1.71 trillion won. This was accompanied by an annual cargo amount of 831,278 tonnes.

As the finalization of the purchase of cargo has been completed, Asiana Airlines progresses toward the integration process into Korean Air, impacting South Korea’s aviation industry.

Source: CA&AS