The board of directors of Asiana Airlines, a pivotal player in the future of the domestic aviation sector, has approved the sale of its cargo division following a three-day deliberation. In response, Korean Air promptly submitted a comprehensive corrective action plan to the European Commission (EC), which encompasses the proposed divestment of its own cargo division. This development is anticipated to expedite the merger and acquisition (M&A) process between Korean Air and Asiana Airlines, drawing them closer to receiving crucial EC approval—a pivotal milestone in the mandatory review process.
During a temporary board meeting on the 2nd, Asiana Airlines extensively discussed the terms of the M&A with Korean Air, including the divestiture of its cargo division. The board passed the agenda, and an official statement from Asiana Airlines highlighted their commitment to deciding on the acceptance of the corrective action plan submitted by Korean Air to the EC. This plan is integral to meeting the prerequisites for finalizing the transaction outlined in the newly established share subscription agreement between the two carriers. Following thorough deliberation, the agenda was ratified according to its original draft. The board meeting, which convened at 7:30 a.m. on the aforementioned day, concluded around 11 a.m. Notably, only CEO Yoo Won-seok, serving as the sole executive director, and three external directors were in attendance. Asiana Airlines reported that one external director was present at the meeting but did not partake in the resolution, while another abstained from voting.
Subsequent to Asiana Airlines’ announcement, Korean Air promptly dispatched a comprehensive corrective action plan to the EC. In an official statement, Korean Air remarked, “Given the approval from both companies’ boards of directors regarding the cargo division sale, we have submitted a corrective action plan to the European competition authorities.” Additionally, they expressed optimism about this development serving as a propellant for the remaining stages of the business combination review process.
