Asiana had been loss-making even before the coronavirus pandemic grounded 324 out of 374 planes of South Korean airlines in early April, according to lobby group Korea Civil Aviation Association. Kumho Industrial is the largest shareholder of Asiana with a 30.77% stake. Kumho Petrochemical, the second-biggest shareholder with an 11.02% stake, was absent from Monday's shareholders meeting. South Korea’s two biggest airlines plan to merge, with Korean Air Lines Co. acquiring Asiana Airlines Inc. for 1.8 trillion won ($1.6 billion) following an injection via its parent, Hanjin Kal Corp. Korean Air says it will acquire Asiana Airlines for $1.62 billion in a major restructuring of the Korean aviation market as the global coronavirus pandemic batters the industry worldwide. Earlier today, Korea’s second-largest airline said it was canceling its international flights to nowhere due to the coronavirus’s … due to the recent COVID-19 outbreak, we will be extending the validity of your mileage that is due to expire this year for 1 year. More than 96% of those who participated in the extraordinary shareholder meeting voted in favor of the plan, under which three common shares in Asiana will be worth one, with no compensation to the shareholder. to learn how you can update your cookie settings. To save costs, the company will further cancel or minimize the planned events, including the company’s 32nd celebration of the founding day and the reward bonus for celebration, Asiana said. Meanwhile, Asiana’s new owner HDC Hyundai Development Company said that despite the latest struggles, there will be no change in its plan to acquire the company at 2.2 trillion won ($1.85 billion). Failure to approve the motion would have left the airline facing the prospect of having to inject even more money into Asiana to pay back its debt. By continuing, you are agreeing to our use of cookies. To help finance the deal, Korean Air plans to sell up to $2.25 billion worth of shares early next year. The reduction in share capital will help Asiana offset part of its deficit, which reached 1.5 trillion won ($1.3 billion) as of September, up from 881 billion won in December 2019. 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Don't miss out on the latest news and information. Asiana Airlines commences international transport of COVID-19 vaccines. Nikkei Inc. No reproduction without permission. © Getty Images, Korean airline merger faces debt burden and antitrust concerns, Korean Air's Asiana deal hits turbulence as stakeholder objects, Korean Air to take over Asiana in $1.62bn deal backed by Seoul, Asiana Airlines shares jump as Seoul considers sale to Korean Air, South Korea's airline M&A left adrift by the pandemic. US-Asia Ticket Change Guideline for COVID-19 Coronavirus (As of April 7, 2020) views ... A. READ: Commentary: Novel coronavirus … HDC will officially grab control of the air carrier’s business from late April. The majority Asiana stake is held by Kumho Industrial Co., an affiliate of airline-to-petrochemical conglomerate Kumho Asiana Group. Korean Air confirms plan to buy troubled Asiana Airlines for US$1.6 billion The deal combining South Korea’s two biggest airlines comes as carriers around the … SEOUL — Korean full-service carrier Asiana Airlines said Tuesday that all executives, including the CEO, have offered to resign to improve the company’s financial health, which has been severely hurt by the latest outbreak of the coronavirus that has cut into aviation services. Discount coupons cannot be applied to code share flights and tickets with other airlines. The airline, like many around the world, has been hard hit by the coronavirus pandemic and resulting travel restrictions. But Asiana Airlines officials said the voluntary resignations are not to be accepted right away, as the company needs them to operate. Earlier today, Korea’s second-largest airline said it was canceling its international flights to nowhere due to the coronavirus’s resurgence. In September, Asiana's creditors -- the KDB and the Export-Import Bank of Korea -- decided to end a drawn-out deal to sell Asiana to a consortium led by HDC Hyundai Development Co. over differences over terms of the deal amid the extended COVID-19 … SEOUL -- Shareholders of Asiana Airlines on Monday approved a 3-to-1 share capital reduction plan, paving the way for rival Korean Air Lines to buy the debt-ridden carrier. We are waiving reissue fee up to 2 times for all international routes Book ahead and travel seamlessly! The proposed takeover was initially met with concern, as experts worried that Asiana's heavy debt load could spill over to Korean Air. Asiana Airlines flight 729 departed the gate at Seoul Incheon international airport on schedule at 10:10 a.m. on Saturday, and a few minutes later took off … Mirroring its impact on aviation, the COVID-19 pandemic has had a significant impact on airline companies due to travel restrictions and a slump in demand among travelers. CAPA News Briefs. Shares of Asiana closed down 10.96% to 4,470 won on Monday. To help finance the deal, Korean Air plans to sell up to $2.25 billion worth of shares early next year. Because of a spike in the number of people in Korea testing positive for COVID-19, Asiana Airlines has backtracked on its idea of offering international flights to nowhere. Korean Air and Asiana reduced global flying, sometimes significantly before Korea became a larger coronavirus outbreak. Han said that he himself would return 40 percent of his annual salary, while other executives will return 30 percent and division leaders will return 20 percent of their annual pay. Not only that, the company said it will activate 10 days of unpaid leave for all employees, including ground crew, cabin crew and maintenance workers, to minimize the workforce following the reduction of its China routes. Kumho Industrial is the largest shareholder of Asiana with a 30.77% stake. By continuing to browse this website, you accept cookies which are used for several reasons such as personalizing content/ads and analyzing how this website is used. Asiana Airlines is the latest carrier to cut back on its Hawaii service as travel demand drops in the wake of the global spread of the new coronavirus. We use cookies to ensure you get the best experience on our website. Due to the latest outbreak of the novel coronavirus that is believed to originate in Wuhan, China last month, Asiana Airlines has reduced 79 percent of its China routes and 25 percent of flights to Southeast Asian countries. South Korean aviation fears a profound impact to Korean Air and Asiana Airlines if the United States bans or limits flights as coronavirus cases continue to … Korean Air says it will acquire Asiana Airlines for $1.62 billion in a major restructuring of the Korean aviation market as the global coronavirus pandemic batters the industry worldwide. (Only 1 can be used per ticket, and cannot be applied to additional itineraries after being applied to a one-way ticket.) Answer 1 of 200: Hi, everyone, I bought tickets on Asiana in January for trip (April 8-18) to Japan with one day/night layover in Seoul on the way back to JFK. The breadth of our coverage … Call 896 6000. SEOUL: A $2-billion-plus deal for a South Korean property developer to take over loss-making Asiana Airlines collapsed Friday in the wake of the coronavirus … "Once Korean Air completes its acquisition of Asiana Airlines, the airline is expected to be ranked as one of the top 10 airlines in the world." Asiana Airlines Inc. could follow suit with an ... or collapsing altogether because of the impact Covid-19 has had on travel. One-third of aviation routes have closed since Covid-19 decimated … The information below is intended to provide minimal information on the status of the country-specific entry restrictions related to COVID-19, and does not guarantee the departure/entry of passengers. The share capital reduction plan slashes Asiana's capital to 372.1 billion won from 1.1 trillion won, and its total number of shares will fall to 74.41 million from 223.2 million previously. The nearly two-hour journey will take place on an Asiana A380 superjumbo passenger jet that has been grounded in the wake of the coronavirus pandemic. They also proposed to indefinitely postpone education sessions for those promoted or transferred to a new position. Those present at the meeting control 41.8% of the voting rights in the airline. CAPA publishes more than 400 global News Briefs every weekday, covering all aspects of the aviation and travel industry. Move smooths the way for takeover by rival Korean Air Lines. Asiana shareholders approve airline's capital reduction plan, South Korea's Asiana Airlines is struggling to weather the coronavirus pandemic. Stay ahead with our exclusives on Asia; the most dynamic market in the world. Two more airlines are planning to launch services within the next few months, having already secured initial approvals prior to COVID-19. I bought tickets on Asiana in January for trip (April 8-18) to Japan with one day/night layover in Seoul on the way back to JFK. The majority Asiana stake is held by Kumho Industrial Co., an affiliate of airline-to-petrochemical conglomerate Kumho Asiana Group. HDC, a mid-sized builder, gave up on buying Asiana in September as the coronavirus pandemic devastated the airline industry. SEOUL: South Korean flag carrier Korean Air said Monday it will buy out its smaller, troubled rival Asiana Airlines in a $1.6 billion deal as it looks to consolidate with the global aviation sector devastated by the coronavirus pandemic. For more information on COVID-19, call the DOH Hotline: (02) 86517800 local 1149/1150. In a statement, Hanjin said the deal to acquire Asiana will “stabilise the Korean aviation industry, which is suffering from the COVID-19 pandemic.” “The company made the decision to help the country’s airline industry continue to grow (amid uncertainties) and minimise the injection of public funds (into Asiana),” Korean Air Chairman Cho Won-tae said in a statement . The Asian Century to buy troubled Asiana Airlines, and is not applicable to Star Alliance mileage tickets straight your! Approval of the voting rights in the airline, like many around the world, has been underway since year! Do n't miss out on the latest news and information rights in the world, has been underway since year! Coronavirus on aviation approve airline 's capital reduction plan, south Korea 's Asiana Airlines ’ unionized workers association... 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