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New CEO tasked with completing Korean Air's Asiana takeover

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An Asiana Airlines passenger jet is seen at Incheon International Airport in this Nov. 28 photo. Yonhap

An Asiana Airlines passenger jet is seen at Incheon International Airport in this Nov. 28 photo. Yonhap

Top exec to focus on reducing complaints from employees, shareholders
By Lee Min-hyung
Asiana Airlines CEO Song Bo-young / Courtesy of Hanjin Group

Asiana Airlines CEO Song Bo-young / Courtesy of Hanjin Group

Song Bo-young, the new head of Asiana Airlines, is tasked with completing Korean Air's takeover on time, while minimizing potential backlash from employees and shareholders of the formerly cash-strapped airline, industry officials said Sunday.

Song took office as CEO of Asiana on Jan. 16 after serving as head of passenger sales and network at Korean Air.

The seamless integration of Korean Air and Asiana Airlines is the top priority under Song's leadership. Last month, Korean Air deployed a team of eight executives specializing in safety, personnel, finance, flight management and maintenance to Asiana Airlines to expedite the nation's flag carrier's takeover.

The move, however, has raised concerns among Asiana employees, as the significant reshuffle of top management increases the likelihood of substantial organizational restructuring at the airline.

Under the latest reshuffle, a total of 12 executives from Asiana Airlines left their posts, with those from Korean Air stepping into their roles. This has elevated Asiana employees' fears of restructuring.

In response, Hanjin Group and Korean Air Chairman Cho Won-tae quelled such concerns, saying that "Korean Air does not want Asiana Airlines to lose its own corporate culture due to the integration."

Industry officials noted that Song will likely focus on reducing potential internal resistance, while carrying out manpower relocation from Asiana Airlines.

"Korean Air pledged not to push for any compulsory restructuring after ending its legal procedure to acquire Asiana Airlines, but the latest executive reshuffle showed otherwise," an official from the aviation industry said. "Some employees from Asiana are still worried about possible manpower reduction."

Another major challenge for Song is the complaints from Asiana's shareholders.

According to an Asiana shareholders' meeting last week, shareholders from the airline can exercise their appraisal right and demand the company purchase their shares at 10,355 won ($7.09) per share if they oppose Asiana's integration with Korean Air.

The stock price of Asiana Airlines extended a losing streak for the past decade on its weak profitability and gloomy outlook for business rebound.

"The price will not be satisfactory enough for most Asiana shareholders, as only a few of them will have generated profits under the price level," a minority shareholder at Asiana Airlines said.

Song joined Korean Air in 1988 and has since taken on key posts. He led regional offices in Southeast Asia and America, and is regarded for his comprehensive understanding of the global aviation business.

Lee Min-hyung mhlee@koreatimes.co.kr


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