SEOUL - Directors of Asiana Airlines Inc. are set to hold a pivotal meeting on Thursday to vote on the divestiture of their cargo business unit, a decision that is key to advancing the takeover by Korean Air Co., the nation’s top airline.
According to Yonhap News Agency, this meeting follows a previous board gathering where directors were divided on the issue, leading to an inconclusive outcome. This sell-off is seen as a strategic move to address the European Commission's concerns regarding competition.
The European Commission, the executive arm of the European Union, has scrutinized the proposed merger between Korean Air and Asiana Airlines. They have indicated that the consolidation of the two South Korean airlines could potentially lead to reduced competition on passenger and cargo services between the European Union and South Korea.
A favorable board decision to sell Asiana Airlines' cargo division could significantly boost Korean Air's chances of receiving the European Commission's approval, thus facilitating the completion of the acquisition process that began three years ago.
Conversely, if the board decides against the sale, it could cast uncertainties on the merger, which is poised to reshape the air travel industry landscape within the region.