Korean Air to absorb Asiana Airlines

Korean flag carrier Korean Air announced during board meetings with its parent company, Hanjin KAL (a South Korean conglomerate that is focused on South Korean shipping and aviation), on Monday, that it is to absorb Asiana Airlines, the 2nd largest airline in South Korea and the 25th largest airline in Asia. The acquisition will create a conglomerate that will be the 10th biggest airline in the world. Korean Air itself will take a 63.9% stake in Asiana Airlines. The transaction is worth a total of 1.8 trillion ($1.6 billion) won (the currency of Korea). Hanjin KAL says that the move will help stabilize the Korean aviation industry, which has been largely affected by travel restrictions due to the coronavirus crisis. Korea Development Bank (a development bank is a bank that invests in start-ups and development projects), which is state-owned, is investing 800 billion won ($722 million) in Hanjin KAL for it to accomplish the acquisition of Asiana Airlines. The transaction will include the integration of Asiana’s 2 subsiaries, Air Busan and Air Seoul into the Korean Air group. 18th of November 2020.

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