대한항공, 아시아나 인수 성사되나... 관계장관회의 주목
Following reports of Korean Air’s possible acquisition of Asiana Airlines,... the South Korean government plans to discuss the matter in the coming hours at a ministerial meeting.
Our Kim Hyo-sun outlines the challenges that lie ahead.
The South Korean government will hold a ministerial meeting Monday to discuss ways to normalize the country's number two carrier, Asiana Airlines.
The meeting is also expected to discuss the possibility of Hanjin Group, which owns Korean Air, buying out its troubled rival,... with financial support from the state-owned Korea Development Bank, which is Asiana's creditor.
The government will back the acquisition if it normalizes the airline industry and ensures employment stability.
"The Korea Development Bank is taking a multi-faceted approach to go over the possibility of ensuring employment stability with minimum financial support for the troubled firms. There's no reason for the government to oppose a deal if it's beneficial in many ways."
The deal, if done, will give birth to an airline that has more than 70 percent of the domestic market share on passenger routes to the Americas and major cargo routes.
This will have to be approved by the country's antitrust watchdog.
To be given the green light by the Fair Trade Commission,... the airlines would either have to be forced to part ways from some of their budget airlines or Asiana would need to be deemed as facing a grave and immediate danger of insolvency.
"As HDC Hyundai Development's negotiation to acquire Asiana Airlines fell through because of the latter's insolvency,... Korean Air was probably identified as plan B to help the troubled carrier stay afloat."
Another challenge is opposition from private equity fund KCGI,... a shareholder of Hanjin Kal.
With numerous challenges ahead,... Hanjin Kal is scheduled to convene a board meeting to discuss the issue in detail.
Kim Hyo-sun, Arirang News.
