Asiana Airlines board reconvenes for vote on cargo business sale

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Asiana Airlines board reconvenes for vote on cargo business sale

Published: 02 Nov. 2023, 09:56

SEO JI-EUN
seo.jieun1@joongang.co.kr

An Asiana Airlines plane takes off from Gimpo International Airport on Wednesday. [NEWS1]

The board of Asiana Airlines, Korea's second-largest air carrier, reconvened Thursday morning to vote on whether to sell its cargo business, as Korean Air seeks to win antitrust approval from European regulators for the takeover of its smaller rival.

The meeting comes three days after the board of directors failed to reach a conclusion.

Major points of contention during Monday's eight-hour-long meeting included worries about the cargo business sale constituting a breach of duty and whether one of Asiana Airlines' five external directors, a legal counsel from Kim & Chang, can exercise his rights as a shareholder, given the law firm has been providing advisory services to Korean Air regarding the merger.

If the board votes to sell the cargo business, it would give Korean Air, the larger of the two full-service carriers, a better chance at winning a nod from the European Commission (EC) for its takeover of Asiana Airlines.

The EC has raised concerns that Korean Air's acquisition of Asiana may restrict competition in the markets for passenger and cargo air transport services between the European Union and Korea.

A rejection, on the contrary, could dampen the prospects of the merger deal, which has been pursued for the past three years.

BY SEO JI-EUN, YONHAP [seo.jieun1@joongang.co.kr]