Asiana had been loss-making even before the coronavirus pandemic grounded 324 out of 374 planes of South Korean airlines in early April, according to lobby group Korea Civil Aviation Association. In a statement, Hanjin said the deal to acquire Asiana will “stabilise the Korean aviation industry, which is suffering from the COVID-19 pandemic.” “The company made the decision to help the country’s airline industry continue to grow (amid uncertainties) and minimise the injection of public funds (into Asiana),” Korean Air Chairman Cho Won-tae said in a statement . 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 … Earlier today, Korea’s second-largest airline said it was canceling its international flights to nowhere due to the coronavirus’s … Answer 1 of 200: Hi, everyone, I bought tickets on Asiana in January for trip (April 8-18) to Japan with one day/night layover in Seoul on the way back to JFK. The acquisition process has been underway since last year, while the process will be completed after a due diligence review, HDC said. We are waiving reissue fee up to 2 times for all international routes Book ahead and travel seamlessly! Korean Air confirms plan to buy troubled Asiana Airlines for US$1.6 billion The deal combining South Korea’s two biggest airlines comes as carriers around the … HDC will officially grab control of the air carrier’s business from late April. “Their resignation illustrates how firm the company is devoted to execute all-out effort to save cost,” an official told The Korea Herald. Because of a spike in the number of people in Korea testing positive for COVID-19, Asiana Airlines has backtracked on its idea of offering international flights to nowhere. I bought tickets on Asiana in January for trip (April 8-18) to Japan with one day/night layover in Seoul on the way back to JFK. to learn how you can update your cookie settings. South Korean aviation fears a profound impact to Korean Air and Asiana Airlines if the United States bans or limits flights as coronavirus cases continue to … Cookie Policy Call 896 6000. Due to the latest outbreak of the novel coronavirus that is believed to originate in Wuhan, China last month, Asiana Airlines has reduced 79 percent of its China routes and 25 percent of flights to Southeast Asian countries. CAPA publishes more than 400 global News Briefs every weekday, covering all aspects of the aviation and travel industry. According to the air carrier, Russian-developed Sputnik V vaccines were delivered to Russia twice on Friday and then once on Tuesday. SEOUL: South Korean flag carrier Korean Air said Monday it will buy out its smaller, troubled rival Asiana Airlines in a $1.6 billion deal as it looks to consolidate with the global aviation sector devastated by the coronavirus pandemic. The airline, like many around the world, has been hard hit by the coronavirus pandemic and resulting travel restrictions. Han said that he himself would return 40 percent of his annual salary, while other executives will return 30 percent and division leaders will return 20 percent of their annual pay. A day earlier, Asiana Airlines’ unionized workers’ association released a statement, suggesting the workers to voluntarily take unpaid leave. The share capital reduction plan slashes Asiana's capital to 372.1 billion won from 1.1 trillion won, and its total number of shares will fall to 74.41 million from 223.2 million previously. Meanwhile, Asiana’s new owner HDC Hyundai Development Company said that despite the latest struggles, there will be no change in its plan to acquire the company at 2.2 trillion won ($1.85 billion). Get trusted insights from experts within Asia itself. Those present at the meeting control 41.8% of the voting rights in the airline. due to the recent COVID-19 outbreak, we will be extending the validity of your mileage that is due to expire this year for 1 year. Shares of Asiana closed down 10.96% to 4,470 won on Monday. "Once Korean Air completes its acquisition of Asiana Airlines, the airline is expected to be ranked as one of the top 10 airlines in the world." SINGAPORE: Long overdue consolidation is finally coming to Asia’s battered airline sector with COVID-19 precipitating the merger of South Korea’s two main airlines. For more news about the novel coronavirus click here. The vote comes as the South Korean government seeks to engineer a deal by which Korean Air will take over Asiana to create a single national flag carrier. This content was commissioned by Nikkei's Global Business Bureau. Asiana Airlines flight 729 departed the gate at Seoul Incheon international airport on schedule at 10:10 a.m. on Saturday, and a few minutes later took off … Kumho Petrochemical has publicly opposed the capital reduction plan, saying the major stakeholder should take bigger responsibility for the company's current situation by giving up more shares than other shareholders. For more information on COVID-19, call the DOH Hotline: (02) 86517800 local 1149/1150. Stay ahead with our exclusives on Asia; the most dynamic market in the world. Korean Air says it will acquire Asiana Airlines for $1.62 billion in a major restructuring of the Korean aviation market as the global coronavirus pandemic batters the industry worldwide. Kumho Petrochemical, the second-biggest shareholder with an 11.02% stake, was absent from Monday's shareholders meeting. We use cookies to ensure you get the best experience on our website. On … READ: Commentary: Novel coronavirus … Asiana Airlines CEO Han Chang-soo (Asiana Airlines). The nearly two-hour journey will take place on an Asiana A380 superjumbo passenger jet that has been grounded in the wake of the coronavirus pandemic. South Korea's Asiana Airlines is struggling to weather the coronavirus pandemic. The majority Asiana stake is held by Kumho Industrial Co., an affiliate of airline-to-petrochemical conglomerate Kumho Asiana Group. Plan your travel ahead with Asiana Airlines! The Asiana … "Once Korean Air completes its acquisition of Asiana Airlines, the airline is expected to be ranked as one of the top 10 airlines in the world." Shareholder approval of the plan, however, means Korean Air will have a lighter burden after the acquisition. Two more airlines are planning to launch services within the next few months, having already secured initial approvals prior to COVID-19. Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century. 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