Korean Air sees pressure on cargo business in 2021, seeks cost cuts after Asiana buy

posted on 2nd December 2020 by Eddie Saunders
Korean Air sees pressure on cargo business in 2021, seeks cost cuts after Asiana buy

By Heekyong Yang, Reuters News

Korean Air Lines Co Ltd said on Wednesday it expects its cargo business to face tougher competition next year as rivals expand in this area to offset a slump in passenger travel globally because of the pandemic.

The company also said it is hoping to complete its acquisition of Asiana Airlines Inc in 2021, after a Seoul court on Tuesday allowed Korean Air’s parent, Hanjin Kal, to issue new shares to Korea Development Bank, paving the way for the deal.

As Korean Air prepares for the acquisition, it plans to review Asiana’s aircraft lease contract to minimise cost, potentially by purchasing aircraft than renting ones, Woo Kee-hong, president of Korean Air, said during a briefing.