Korean Air has selected Air Incheon as the preferred bidder for the sale of Asiana Airlines’ global cargo freighter business.

Korean Air said in a press release that it selected Air Incheon based on several key criteria: the certainty of completing the transaction, the ability to maintain and enhance long-term competitiveness of the air cargo business, and the capability to mobilise funds through a competent consortium.

The decision was made at the board of directors meeting held on June 17.

Air Incheon was founded in 2012 and is Korea’s only all-cargo airline, with operations focused in Asia.

The press release further explained that Air Incheon is expected to strengthen its competitiveness by utilising Asiana Airlines’ long-haul network to the Americas and Europe, and fleet of larger cargo aircraft.

Korean Air plans to sign a framework agreement with Air Incheon in July after agreeing on the contract conditions, with the agreement being subject to review by the European Commission.

A Korean Air representative said: “The preferred bidder was selected through a comprehensive evaluation of all factors crucial to the growth of the air cargo industry, a key national industry, while maintaining the existing competitive environment.

“We are committed to quickly finalising the sales process through flexible negotiations and completing the acquisition of Asiana Airlines.”

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