Four low-cost carriers shortlisted to acquire Asiana Airlines cargo division

Aircraft of Asiana Airlines at Incheon International Airport [YONHAP]

Four low-cost carriers have been shortlisted as suitable candidates to acquire the cargo division of full-fledged carrier Asiana Airlines, according to industry sources Tuesday.

According to the sources, financial services firm UBS, tasked with selling Asiana Airlines' cargo division, has selected Jeju Air, Eastar Jet, Air Premia and cargo-focused Air Incheon as suitable candidates, and notified the companies of the decision earlier in the day.

Asiana Airlines plans to sell its cargo division as part of conditions recently set by the European Union over the company's envisioned merger with industry leader Korean Air due to competition concerns.

The budget air carriers submitted their preliminary bids for the deal last week. UBS and Korean Air plan to conduct due diligence on the companies to select a final preferred bidder.

Many of Asiana Airlines' cargo aircraft are known to be over 30 years old, leading to speculation that the acquiring company will need to invest significantly in large-scale maintenance costs.

Yonhap