The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Business
  • Tech
  • Bio
  • Companies
Fri, August 12, 2022 | 03:46
Airlines
Korean Air to buy Asiana, emerges as world's 10th-largest airline
Posted : 2020-11-16 11:02
Updated : 2020-11-16 14:19
Print Preview
Font Size Up
Font Size Down
Korean Air / Korea Times file
Korean Air / Korea Times file

Korean Air Lines Co., South Korea's biggest carrier, said Monday that it will buy its smaller local rival Asiana Airlines Inc. in a deal valued at 1.8 trillion won (US$1.62 billion) that would create the world's 10th-biggest airline by fleets.

Korean Air plans to buy new shares worth 1.5 trillion won to be sold by Asiana, and buy bonds to be floated by the smaller carrier, the company said in a regulatory filing.

Korean Air, currently the world's 18th largest, will acquire a 30.77 percent stake in Asiana from the debt-laden carrier's creditors led by the Korea Development Bank (KDB).

The state lender plans to invest 500 billion won in shares to be issued by Hanjin KAL and 300 billion won in the company's convertible bonds.

Hanjin KAL, the holding company of airline conglomerate Hanjin Group, is expected to submit a letter of intent to the KDB early this week to proceed with the deal.

In its broader acquisition plan, Korean Air will gradually integrate three low-cost carriers -- Korean Air's Jin Air Co. and Asiana's Air Busan Co. and Air Seoul Inc. -- after completing the acquisition of Asiana.

The majority Asiana stake is held by Kumho Industrial Co., an affiliate of airline-to-petrochemical conglomerate Kumho Asiana Group.

In September, Asiana's creditors -- the KDB and the Export-Import Bank of Korea -- decided to end a drawn-out deal to sell Asiana to a consortium led by HDC Hyundai Development Co. over differences over terms of the deal amid the extended COVID-19 pandemic.

The HDC-led consortium initially signed the deal to acquire Asiana from Kumho Industrial, as well as new Asiana shares to be issued and the carrier's six affiliates, for 2.5 trillion won.

But HDC later demanded a renegotiation with Kumho and the creditors over the terms and another round of due diligence on Asiana to reflect the pandemic's impact on the airline industry. The demand was rejected by the creditors. (Yonhap)



 
LG
  • Hydrogen bus trial service begins in Busan, Ulsan, South Gyeongsang Province megacity
  • Vacationers warned not to buy marijuana cookies in Thailand
  • Seoul City to phase out semi-basements as dwellings
  • Korean firms asked to consult with indigenous peoples prior to searching for renewable energy resources
  • Convenience stores offer unconventional products for Chuseok
  • Defense minister refutes China's claim on THAAD
  • Internet banks perform poorly in board gender diversity
  • Korean builders desperate for oil money
  • Yoon holds first meeting with USFK chief since inauguration
  • Solo Leveling artist's death sheds light on webtoon creators' working condition
  • Interactive News
  • With tough love,
  • 'Santa dogs' help rebuild burnt forests in Andong
  • 'Santa dogs' help rebuild burnt forests in Andong
  • A tale of natural wine
    • 'Good Doctor' director to debut Netflix's high-strung suspense series, 'A Model Family' 'Good Doctor' director to debut Netflix's high-strung suspense series, 'A Model Family'
    • Death of young webtoon artist sparks controversy over harsh working conditions Death of young webtoon artist sparks controversy over harsh working conditions
    • Musical 'Kinky Boots' tells people to love themselves as they are Musical 'Kinky Boots' tells people to love themselves as they are
    • Crime thriller 'Limit' is about mother's quest to save abducted son Crime thriller 'Limit' is about mother's quest to save abducted son
    • From P1Harmony to Zico, K-pop hotshots to perform in Abu Dhabi next month From P1Harmony to Zico, K-pop hotshots to perform in Abu Dhabi next month
    DARKROOM
    • Ice is melting, land is burning

      Ice is melting, land is burning

    • Tottenham 6-3 Team K League

      Tottenham 6-3 Team K League

    • Afghanistan earthquake killed more than 1,000

      Afghanistan earthquake killed more than 1,000

    • Divided America reacts to overturn of Roe vs. Wade

      Divided America reacts to overturn of Roe vs. Wade

    • Namaste: Yogis to celebrate International Yoga Day

      Namaste: Yogis to celebrate International Yoga Day

    The Korea Times
    CEO & Publisher : Oh Young-jin
    Digital News Email : webmaster@koreatimes.co.kr
    Tel : 02-724-2114
    Online newspaper registration No : 서울,아52844
    Date of registration : 2020.02.05
    Masthead : The Korea Times
    Copyright © koreatimes.co.kr. All rights reserved.
    • About Us
    • Introduction
    • History
    • Location
    • Media Kit
    • Contact Us
    • Products & Service
    • Subscribe
    • E-paper
    • Mobile Service
    • RSS Service
    • Content Sales
    • Policy
    • Privacy Statement
    • Terms of Service
    • 고충처리인
    • Youth Protection Policy
    • Code of Ethics
    • Copyright Policy
    • Family Site
    • Hankook Ilbo
    • Dongwha Group