Asiana capital reduction plan gets approved by shareholders
Shareholders of Asiana Airlines have effectively agreed to rival Korean Air acquiring the cash-strapped carrier, by voting to approve a share capital reduction plan.
More than 96% voted for it at the extraordinary shareholder meeting which dilutes their shares from 3 to 1, paving the way for a merger with Korean Air.
The reduction in share capital significantly reduces its capital but improves the chances of a merger by reducing the financial burden on KAL.
"Considering the direct impact of the unprecedented pandemic, we cannot rule out limitation on stock trading or credit ratings cut unless we reduce the share capital," Asian said in a statement.
Korean Air hopes to complete the deal for Asiana, subject to government approvals in multiple countries, by the middle of 2021.
Meanwhile, Korean Air this week announced the expansion of its AI-powered chatbot service to include the English language on Facebook messenger and Korean instant messaging app KakaoTalk.
Written by Ray Montgomery, Asia Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025
U.S.A. and Israel attacks on Iran impact air movements in the Gulf (Update 1.00pm CET)
Global tourism exceeds 1.5 billion travelers announces UN-Tourism