Korean Air has announced plans to sign a framework agreement with Air Incheon next month as they have selected the cargo carrier as the preferred bidder for Asiana Airlines’ global freighter business. The decision comes as Korean Air looks to divest its freighter business in order to meet the concessions required for the European Commission’s approval of its acquisition of Asiana.
Air Incheon, a Korean cargo carrier that started operations in 2012, currently operates a fleet of four Boeing 737-800 freighters providing services within Asia. Acquiring the cargo business from Asiana, which operates predominantly Boeing 747-400 widebody freighters, would allow Air Incheon to expand its operations to Europe and the Americas. This is an important national industry and Korean Air mentioned that the preferred bidder was selected based on a thorough evaluation of various factors crucial to the growth of the air cargo industry.
Korean Air aims to finalize the sales process quickly through flexible negotiations in order to complete the acquisition of Asiana Airlines in a timely manner. The deal will bring significant benefits to both carriers and is expected to boost economic growth in South Korea and beyond.
