Asiana Airlines, Korean Air shares soar ahead of key merger decision

Airplanes of Korean Air Lines and Asiana Airlines parked at Incheon International Airport. [YONHAP]

Shares in both Asiana Airlines and Korean Air Lines have surged in morning trade on Monday, boosted by an expectation that a board meeting could increase chances of regulatory approval of a merger between the two carriers.

The Kospi-listed Asiana Airlines rose 13.8 percent as of 9:47 a.m. while Korean Air Lines edged up 0.56 percent and preferred stock of Korean Air up 6.5 percent.

Korean Air Lines and Asiana Airlines are slated to decide on selling the latter carrier’s cargo business at a board meeting on Monday, which could directly influence the European antitrust regulators’ decision to permit a merger between the companies.

Korean Air plans to put together an agenda for selling Asiana's cargo business and detailed measures to maintain employment levels, during a board meeting Monday morning, according to local media outlets.

Asiana Airlines is set to hold a meeting at 2 p.m. the same day to decide whether to agree with Korean Air's plan.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]