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. It’s the most comprehensive source of market intelligence in the world, with around 50 per cent of content translated from non-English sources. 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The acquisition process has been underway since last year, while the process will be completed after a due diligence review, HDC said. US-Asia Ticket Change Guideline for COVID-19 Coronavirus (As of April 7, 2020) views ... A. “Their resignation illustrates how firm the company is devoted to execute all-out effort to save cost,” an official told The Korea Herald. To help finance the deal, Korean Air plans to sell up to $2.25 billion worth of shares early next year. 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. 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 deal combining South Korea’s two biggest airlines comes as carriers around the world struggle with low demand during the coronavirus pandemic; Asiana … Han said that all executives, including himself, have requested to resign to share the burden of the company’s difficult business situation, as part of a self-rescue plan to dramatically “cut down anything that is not related to boosting the company’s profitability.”. Please review our Cookie Policy This story is part of AIN 's continuing coverage of the impact of the coronavirus on aviation. 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. 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 … Read more. Shareholder approval of the plan, however, means Korean Air will have a lighter burden after the acquisition. Kumho Industrial is the largest shareholder of Asiana with a 30.77% stake. We are waiving reissue fee up to 2 times for all international routes Book ahead and travel seamlessly! Don't miss out on the latest news and information. 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. 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 … 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. 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 . Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century. 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. According to the air carrier, Russian-developed Sputnik V vaccines were delivered to Russia twice on Friday and then once on Tuesday. 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 … To find out more, please click this link. For more news about the novel coronavirus click here. SEOUL, Feb. 18 (Yonhap) -- Asiana Airlines Inc., South Korea's second-biggest airline, on Tuesday said all of its employees will take unpaid leave as air travel demand has plummeted due to the spreading coronavirus outbreak. Star Alliance Hygiene Safety Commitment. Given the situation with Coronavirus -which appears to be spreading and since yesterday both Japan and S.Korea on level 2 alert (by both US Dept of State and CDC). "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." This is only applicable to Asiana Airline flights provided by Asiana Airlines, and is not applicable to Star Alliance mileage tickets. 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. Move smooths the way for takeover by rival Korean Air Lines. Tickets purchased via Asiana Airlines website/mobile or reservation center Reservation Center Korea : +82-2-2669-8000 U.S. : +1-800-227-4262 China : +86-10-8451-0101 Japan : +81-3-5812-6600 Other office : Contacts >> B. Also, I am traveling with a child. 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. HDC, a mid-sized builder, gave up on buying Asiana in September as the coronavirus pandemic devastated the airline industry. 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 vote comes as the South Korean government seeks to engineer a deal by which Korean Air will take over Asiana to create a single national flag carrier. Entry restrictions due to the spread of the COVID-19 are updated per country as follows. Discount coupons cannot be applied to code share flights and tickets with other airlines. 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. 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. This content was commissioned by Nikkei's Global Business Bureau. 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 … 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. The majority Asiana stake is held by Kumho Industrial Co., an affiliate of airline-to-petrochemical conglomerate Kumho Asiana Group. But Asiana Airlines officials said the voluntary resignations are not to be accepted right away, as the company needs them to operate. 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. 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. Sign up to our newsletters to get our best stories delivered straight to your inbox. South Korea's Asiana Airlines is struggling to weather the coronavirus pandemic. 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. Earlier today, Korea’s second-largest airline said it was canceling its international flights to nowhere due to the coronavirus’s … 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). CAPA News Briefs. Asiana Airlines CEO Han Chang-soo (Asiana Airlines). 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. In a letter sent to Asiana employees, the air carrier’s CEO Han Chang-soo said that the company has activated an emergency business management due to the crisis following the epidemic outbreak. Shares of Asiana closed down 10.96% to 4,470 won on Monday. 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. 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. Asiana Airlines Inc. could follow suit with an ... or collapsing altogether because of the impact Covid-19 has had on travel. "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." (Only 1 can be used per ticket, and cannot be applied to additional itineraries after being applied to a one-way ticket.) SINGAPORE: Long overdue consolidation is finally coming to Asia’s battered airline sector with COVID-19 precipitating the merger of South Korea’s two main airlines. Those present at the meeting control 41.8% of the voting rights in the airline. We use cookies to ensure you get the best experience on our website. Plan your travel ahead with Asiana Airlines! Earlier today, Korea’s second-largest airline said it was canceling its international flights to nowhere due to the coronavirus’s resurgence. "Considering the direct impact of the unprecedented pandemic, we cannot rule out limitation on stock trading or credit ratings cut unless we reduce the share capital," said the company in a statement. Kumho Petrochemical, the second-biggest shareholder with an 11.02% stake, was absent from Monday's shareholders meeting. Asiana Airlines commences international transport of COVID-19 vaccines. 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. Call 896 6000. By continuing, you are agreeing to our use of cookies. SKYTRAX 5-Star Airline 13 Consecutive Years(2007-present) Korean Air confirms plan to buy troubled Asiana Airlines for US$1.6bn. 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 … 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. CAPA publishes more than 400 global News Briefs every weekday, covering all aspects of the aviation and travel industry. 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. Asiana Airlines CEO Han Chang-soo (Asiana Airlines) 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. Asiana shareholders approve airline's capital reduction plan, South Korea's Asiana Airlines is struggling to weather the coronavirus pandemic. 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. On … A labor union of pilots said that they agreed for all pilots to take 15 days of leave and return 50 percent of their bonus pay. The Asiana … In a statement, Hanjin said the deal to acquire Asiana will “stabilize 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 minimize the injection of public funds (into Asiana),” Korean Air Chairman Cho Won-tae said in a statement . HDC, a mid-sized builder, gave up on buying Asiana in September as the coronavirus pandemic devastated the airline industry. The airline, like many around the world, has been hard hit by the coronavirus pandemic and resulting travel restrictions. Korean Air and Asiana reduced global flying, sometimes significantly before Korea became a larger coronavirus outbreak. Stay ahead with our exclusives on Asia; the most dynamic market in the world. 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. Asiana Airlines has successfully transported Korean-made coronavirus vaccines from Incheon to Moscow, the company said Tuesday. Nikkei Inc. No reproduction without permission. Two more airlines are planning to launch services within the next few months, having already secured initial approvals prior to COVID-19. One-third of aviation routes have closed since Covid-19 decimated … They also proposed to indefinitely postpone education sessions for those promoted or transferred to a new position. To help finance the deal, Korean Air plans to sell up to $2.25 billion worth of shares early next year. READ: Commentary: Novel coronavirus … Get trusted insights from experts within Asia itself. For more information on COVID-19, call the DOH Hotline: (02) 86517800 local 1149/1150. In the interest of the safety of customers, Star Alliance member airlines have agreed to a common set of health and hygiene safety measure. HDC will officially grab control of the air carrier’s business from late April. 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. The Inquirer Foundation supports our healthcare frontliners and is still accepting cash donations to be deposited at Banco de Oro (BDO) current account #007960018860 or donate through PayMaya using this link . © 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. I love Mecenat is a mecenat company that practices social contributions through mecenat activities. The breadth of our coverage … Kumho Industrial is the largest shareholder of Asiana with a 30.77% stake. What you need to know about Coronavirus. A day earlier, Asiana Airlines’ unionized workers’ association released a statement, suggesting the workers to voluntarily take unpaid leave. The proposed takeover was initially met with concern, as experts worried that Asiana's heavy debt load could spill over to Korean Air. The majority Asiana stake is held by Kumho Industrial Co., an affiliate of airline-to-petrochemical conglomerate Kumho Asiana Group. 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. Answer 21 of 198: 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. 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. The airline, like many around the world, has been hard hit by the coronavirus pandemic and resulting travel restrictions. to learn how you can update your cookie settings. Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}}. 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 … 1. 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