On August 7, 2024, Korean Air inked a preliminary agreement with Air Incheon to divest Asiana Airlines' cargo business. This agreement follows the announcement in June that named Air Incheon as the preferred bidder for Asiana's cargo business as part of Korean Air's acquisition of Asiana Airlines. In a statement, the South Korean airline confirmed the transaction amount to be 470 billion KRW (approximately $342 million).
The company disclosed in its filing on the Dart electronic disclosure system (Repository of Korea's Corporate Filings) that the sale could be finalized within six months from the closure date of the share acquisition deal. Korean Air added that the signed agreement addressed issues including the structure, schedule, and terms of the sale. Asiana's cargo business is being sold to secure regulatory approval for Korean Air's acquisition of Asiana. The deal is still subject to review by the European Commission.
Korean Air first announced its plan to acquire Asiana in November 2020, but the process was delayed by the Covid-19 pandemic and the subsequent disruption of the aviation sector. In 2023, the plan raised concerns from the European Commission, which stated that the acquisition would reduce competition between Europe and South Korea as the two carriers dominate the long-haul market to and from South Korea. Korean Air has also faced challenges in obtaining approval for the deal in Japan and the United States.
