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| An Asiana Airlines passenger plane / Korea Times file |
By Kim Bo-eun
The bidding process for the sale of Asiana Airlines is set to begin this week, said Lee Dong-gul, chairman of Kumho Asiana Group's main creditor, Korea Development Bank (KDB), Tuesday. KDB declined to specify details but according to industry sources and media reports, the process could start as early as Thursday.
Aekyung has stated its intention to take over the debt-ridden company. It operates the low-cost carrier Jeju Air, but the group is considered too small to be able to acquire Asiana.
Conglomerates such as SK, Hanwha, GS, and Lotte said earlier they were not interested, but this is seen as a tactic to keep prices down, and they may join the bid at the last minute.
The list of potential buyers is set to be drawn up by September. The bid will likely take place in October or November, when the preferred bidder will be selected
Kumho group and creditors are then set to sign a stock purchase agreement by the end of the year, and hand over management rights to the new owner.
Asiana is the number two full-service carrier and operates 74 routes to 62 cities in 21 countries. Globally it is ranked 30th among airline companies.
It posted a net loss of 10.4 billion won last year.
Asiana Airlines is likely to be sold as a package along with its two budget carrier affiliates Air Seoul and Air Busan. A package sale would help keep prices up.
