financetom
Business
financetom
/
Business
/
Air Incheon to consider widebody freighter orders after Asiana cargo purchase
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Air Incheon to consider widebody freighter orders after Asiana cargo purchase
Jul 11, 2024 10:52 PM

SEOUL (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 alongside 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.

(This story has been corrected to clarify that Air Incheon does plan to sell space directly to logistics firms in paragraph 6)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Hutchmed Begins Registration Stage for Phase 2/3 Trial of Investigational Autoimmune Disorder Drug
Hutchmed Begins Registration Stage for Phase 2/3 Trial of Investigational Autoimmune Disorder Drug
Mar 22, 2024
05:04 AM EDT, 03/22/2024 (MT Newswires) -- Hutchmed ( HCM ) said late Thursday it has started the registration stage for a phase 2/3 clinical trial of investigational drug sovleplenib for adult patients with warm antibody autoimmune hemolytic anemia in China. The move follows positive data from the proof-of-concept phase 2 stage of the trial and a consultation with the...
Cathie Wood's ARK Invest scoops up nearly 10,000 Reddit shares in debut
Cathie Wood's ARK Invest scoops up nearly 10,000 Reddit shares in debut
Mar 22, 2024
(Reuters) - Popular investor Cathie Wood's ARK Invest bought nearly 10,000 shares of Reddit ( RDDT ) in the social media platform's strong market debut on Thursday, an email from the asset manager showed. A total of 9,982 shares of the loss-making company was added to ARK Next Generation Internet ETF ( ARKW ) and ARK Fintech Innovation ETF (...
Once a beacon of stability, Vietnam to name third president in a year
Once a beacon of stability, Vietnam to name third president in a year
Mar 22, 2024
HANOI, March 22 (Reuters) - Communist-ruled Vietnam is seeking its third president in little more than a year after the resignation of Vo Van Thuong, who was only elected last year after the sudden dismissal of his predecessor. With accumulated foreign direct investment higher than its gross domestic product, Vietnam's stability is crucial to multinationals with large operations in the...
Japan's union group Rengo announces biggest wage hikes on record
Japan's union group Rengo announces biggest wage hikes on record
Mar 22, 2024
TOKYO (Reuters) -Japanese firms have agreed to raise pay by 5.25% this year, the biggest rise under comparable data since 2013, the country's largest union group Rengo confirmed on Friday. The results of the closely-watched wage negotiations are announced in several stages, in which the blue-chip firms are first to wrap up their talks in mid-March. The second announcement on...
Copyright 2023-2026 - www.financetom.com All Rights Reserved