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Air Incheon to consider widebody freighter orders after Asiana cargo purchase
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Air Incheon to consider widebody freighter orders after Asiana cargo purchase
Jul 11, 2024 6:50 PM

SEOUL, July 12 (Reuters) - Air Incheon, set to become

South Korea's second-biggest freight carrier once a deal to buy

Asiana Airlines' cargo unit is finalised, will

consider both Boeing ( BA ) and Airbus freighters to

refresh the widebody fleet, its CEO said.

The EU competition regulator last month approved Air

Incheon, a small cargo-only carrier with four Boeing 737s, as

the preferred bidder to buy Asiana's cargo business, as a

condition of approval for it to merge with Korean Air Lines

.

The purchase for an undisclosed sum would transfer Asiana's

fleet, staff, customers and traffic rights to Air Incheon, which

is based at Incheon airport, South Korea's main international

gateway and the world's fifth-busiest cargo airport.

Asiana operates 11 Boeing 767 and 747 freighters to 25

cities in 12 countries.

The acquisition will include the rights to fly to major

Chinese export hubs like Shanghai, Guangzhou and Hong Kong, and

to the U.S., Air Incheon CEO Stanley Seunghwan Lee told Reuters

in an interview this week.

The aim is to grow into a global charter and wet-lease

provider rather than selling space directly to logistics firms,

he added.

Lee plans to gradually update Asiana's ageing widebody

fleet, a task complicated by a global aircraft shortage and

delayed U.S. approval for Boeing 777-300ER

passenger-to-freighter conversions.

"Air Incheon can operate the current Asiana fleet at least

five or seven years," he said.

Lee is talking to lessors and manufacturers about converted

Boeing 777-300ERs, Boeing 777 factory freighters, or Airbus A350

freighters, which the European planemaker expects to enter

service in 2026.

The Asiana Pilot Union (APU) has said it is unhappy with Air

Incheon as preferred bidder, saying it is too small to compete

with Korean Air.

The APU, which also opposes Korean Air buying Asiana, said

more than 100 Asiana cargo pilots had, as of Thursday, submitted

letters indicating they will resign if transferred.

Lee said Air Incheon needs the cooperation and experience of

Asiana staff and will guarantee the same salary and similar

benefits.

Korean Air had obtained a green light from 13 of 14

competition authorities for the Asiana deal and CEO Walter Cho

has said he anticipates the final U.S. decision by the end of

October.

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