MIAMI – Korean Air Lines (KE) has announced its plans to acquire Asiana Airlines (OZ). If the purchase is completed, KE would become the 10th-biggest airline in the world by fleet size.
According to KE Chairman Cho Won-tae, the company made the purchase decision to help the country’s airline industry continue to grow. Additionally, the move will minimize the injection of public funds into OZ.
The indebted airline is worth ₩1.8tn. KE will therefore spend ₩1.5tn to acquire shares in the ailing airline. After this initial investment, the former will invest ₩300bn worth of OZ perpetual bonds.
Apart from this operation, the state-run Korea read more ⇒
Source:: “Airways Magazine”