Hyundai Glovis Considers Stake in Air Incheon Amid Asiana Cargo Acquisition

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Boeing 787-9, Dreamliner, Dreamliner, B787-9, c/n 34811 / 549, HL8082, Korean Airlines, KE, KAL, KE73, Seoul Incheon International Airport, ICN, RKSI, Inaugural, On June 1 2017 Korean Airlines (KAL/KE) inaugurated Boeing 787-9 Dreamliner service to Toronto Lester B. Pearson International Airport (YYZ/CYYZ). Toronto is the first long haul destination for Korean’s Dreamliner fleet, initial operations were limited to local Asian destinations. Korean’s Boeing Dreamliner international service commenced with aircraft HL8082 (c/n 34811 / 549), the airline’s second 787-9 which was delivered in April 2017. The inaugural Toronto 787-9 flight number KE73 landed on June 1 2017 on Pearson’s Runway 23. Toronto Lester B. Pearson International Airport, YYZ, CYYZ, Toronto, Mississauga, ON, June 1 2017, (c) copyright Andrew H. Cline 2017, Andy Cline, Andrew Cline, andrew.cline@sympatico.ca, 416 209 2669

South Korean logistics giant Hyundai Glovis is exploring a potential investment in Air Incheon (KJ, Seoul Incheon) as the latter prepares to acquire Asiana Airlines’ cargo division.

In a regulatory filing dated August 2, Hyundai Glovis acknowledged ongoing considerations regarding a possible stake in Air Incheon. The company clarified that no final decision has been made yet but expects to reach a conclusion within the next 30 days. This announcement comes in response to recent local media speculation.

Air Incheon emerged as a surprising contender in the competition to acquire Asiana’s cargo operations, which are being sold to address antitrust concerns related to the proposed merger of Asiana and Korean Air. The transaction will see Air Incheon, currently operating a fleet of four B737-800(SF) freighters, integrate Asiana’s eleven freighters, predominantly B747 models, along with existing contracts and some of Asiana’s workforce. Air Incheon managed to secure the deal over competing bidders Air Premia and Eastar Jet.

The acquisition is backed by Socius Private Equity, which controls over 85% of Air Incheon. Socius plans to raise KRW400 billion (approximately USD290 million) through an expansion of its Socius No. 5 fund to finance the purchase. Should Hyundai Glovis decide to invest, it would diversify its portfolio by adding this air cargo venture to its existing logistics, shipping, and distribution businesses.

The finalization of Air Incheon’s acquisition is pending approval from regulatory bodies, including the European Commission and the United States Department of Justice. The US remains the last jurisdiction to grant approval, either conditionally or otherwise, for the merger.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com

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