Subscribe
E-Paper
 |
| Airplanes of Korean Air and Asiana Airlines are parked at Gimpo International Airport in Seoul in this 2022 file photo. Newsis |
By Park Jae-hyuk
There is growing skepticism over the success of Korean Air's efforts over the last three years to acquire Asiana Airlines, according to industry officials, Wednesday.
Such concerns have emerged as antitrust regulators of the U.S. and the European Union kept delaying their approvals for the deal and asked Korean Air to come up with more effective measures to prevent a monopoly after the merger.
Although both buyer and seller have denied a plan B at this moment, speculation has increased that Asiana could be sold to a different company.
Earlier this week, a local newspaper reported that Korea Development Bank (KDB), the main creditor of Asiana, tasked Samil PwC with reviewing the feasibility of selling the cash-strapped air carrier to a third party.
KDB immediately denied the report, emphasizing that Asiana asked the accounting firm to assess its financial situation, so as to brace for changes in the aviation industry during the post-pandemic era.
"The request was irrelevant to selling Asiana to a third party," the state-run lender said.
KDB Chairman Kang Seog-hoon also told reporters in June that antitrust authorities of the U.S., EU and Japan are expected to draw conclusions within the third quarter of this year. However, he did not rule out the possibility of further delays in their decision-making.
In June, Korean Air asked the European Commission to extend the deadline for its decision once again to October, as the company needed more time to come up with measures to dispel the regulator's concerns.
The U.S. Department of Justice (DOJ) even reviewed options to file a lawsuit to prevent the merger deal from harming competition in passenger and cargo transportation between the U.S. and Korea.
The two antitrust regulators are especially concerned about limited competition in cargo transportation, but Korean Air and KDB have remained cautious about selling Asiana's cargo transportation division to a third party.
"We will do our best to win the final approvals after finishing negotiations with the antitrust authorities," a Korean Air official said.
Amid the lingering uncertainties, some companies and private equity firms are said to be taking preparatory steps to acquire Asiana if Korean Air's attempt ends in failure.
Hanwha Group is mentioned as one of the potential buyers.
The conglomerate reportedly contacted Harim Group-owned Pan Ocean recently to indicate its intention to acquire Pan Ocean's stake in Hanjin KAL, the holding firm of Hanjin Group, which Korean Air belongs to.
When KDB failed to sell Daewoo Shipbuilding & Marine Engineering to HD Korea Shipbuilding & Offshore Engineering in 2022 due to the European regulator's veto, Hanwha emerged as an alternative buyer and eventually acquired the shipbuilder, which was renamed Hanwha Ocean.
