March 31 (Reuters) - Korean Air Strains Co Ltd 0034
March 31 (Reuters) – Korean Air Strains Co Ltd 003490.KS expects it’ll take two years after its buy of Asiana Airways Inc 020560.KS closes earlier than the rival manufacturers could be built-in, and it plans to merge their three low-cost arms into one, its president stated.
Korean Air in November introduced it will spend 1.eight trillion gained ($1.59 billion) to change into Asiana’s high shareholder, in aviation’s first main consolidation since COVID-19 introduced the business to its knees.
It is usually the largest shake-up in South Korean air journey since Asiana’s founding forward of the 1988 Seoul Olympics.
In a written briefing to media on Wednesday, Korean Air President Woo Keehong stated his airline hoped to obtain competitors approvals for the Asiana deal from 9 international locations by the top of the 12 months.
“Korean Air plans to completely combine with Asiana Airways about two years after Korean Air completes the acquisition and Asiana Airways turns into its subsidiary,” he stated.
Korean Air additionally expects to merge the airways’ low-cost arms Jin Air Co Ltd 272450.KS, Air Busan Co Ltd 298690.KS and Air Seoul right into a single finances provider that may higher realise economies of scale, Woo stated.
“By consolidating these three airways, it will possibly change into a top-level low-cost airline not solely in Korea, but in addition in Asia,” he stated.
Korean Air and Asiana will look to combine their giant plane fleets, which in some instances have totally different engine varieties for a similar mannequin, Woo stated, including that it will be simpler to part out Asiana’s planes, as many have leases expiring inside 5 years.
Korean Air expects about 1,200 roles between the airways will overlap, however it’ll handle the state of affairs by attrition and retirements reasonably than direct job cuts, he stated.
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(Reporting by Jamie Freed in Sydney. Modifying by Gerry Doyle)
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