In a significant development, Asiana Airlines Inc., South Korea’s second-largest air carrier, has announced that its board will reconvene this week to deliberate on the potential sale of its cargo business. This decision carries immense weight as it plays a pivotal role in Korean Air Co.’s pursuit of antitrust approval from European Union regulators for its planned acquisition of Asiana Airlines.
The highly anticipated meeting is scheduled for Thursday, as revealed by Asiana in a recent regulatory filing. However, specific details regarding the time and location of the gathering have yet to be disclosed.
This meeting comes on the heels of a previous board session, which, surprisingly, ended without a conclusive decision. During this deliberation, board members grappled with disagreements surrounding the proposed cargo business sell-off, the validity of votes cast by external board members, and various other related issues.
The impending decision carries far-reaching consequences. If the Asiana board votes in favor of selling the cargo business, it could significantly bolster Korean Air Co.’s chances of gaining the green light from the European Commission, the executive body of the European Union, for the acquisition of its smaller rival.
EU antitrust regulators have not remained silent on this matter. They have voiced concerns over the potential impact of Korean Air’s acquisition of Asiana on competition within the markets for passenger and cargo air transport services between the EU and South Korea.
On the flip side, should the board opt to reject the sale of the cargo business, it could cast a shadow over the future of the merger deal, which has been actively pursued over the past three years. The stakes are high, and all eyes are on the forthcoming board meeting as the fate of this critical business decision hangs in the balance.
(Source: The Korea Times | Simple Flying)
