CEO: Korean Air eyeing Asiana deal
Korean Air Lines says is it is mulling a possible stake purchase of troubled rival Asiana Airlines.
Korean Air Chairman Cho Won-tae said Asiana, which is up for sale by its parent company Kumho Asiana Group, is on its radar.
"It is a very sensitive issue to comment on but we are looking at the deal," Cho said.
Kumho Asiana is required to sell a 33.5% stake in Asiana under an agreement to secure a rescue package from creditors.
The two carriers dominate the full-service market in Korea and a tie-up could result in competition concerns.
Other Korean conglomerates including Hanwha and Aekyung have been put forward in the media as possible bidders, although none have publically acknowledged any talks.
Cho also said Korean Air will implement a ‘more aggressive strategy’ against the growing influence of domestic low cost carriers.
"Over the past 10 years, Korean Air has pushed forward a strategy that differentiates itself from others in services. We have recently felt an urgent need to take some measures to respond to budget carriers that are strengthening their presence in the airline industry," Cho said on the side lines of the IATA annual general meeting in Seoul.
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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.
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