South Korea Approves Sale of Asiana Cargo to Air Incheon

South Korea’s Ministry of Land, Infrastructure and Transport has approved the sale of Asiana Airlines’ cargo division to Air Incheon. The approval, granted at the end of March 2025, allows Asiana to finalize the transaction by mid-year. The sale is a key condition required by the European Commission to green-light the merger between Asiana Airlines and Korean Air, which raised competition concerns on cargo routes between South Korea and Europe.

Air Incheon will acquire Asiana’s cargo business for KRW470 billion (USD528 million). The purchase significantly expands Air Incheon’s fleet and operational capacity. The deal will add four Boeing 747-400(BDSF)s, six Boeing 747-400FSCDs, and one Boeing 767-300F to Air Incheon’s existing fleet of four Boeing 737-800(SF)s and one 747-400(BDSF). Around 800 Asiana employees will also transfer to the new owner.

The acquisition is being financed by a consortium led by Socius Private Equity, the majority owner of Air Incheon. The group aims to raise KRW430 billion (USD300 million) to fund the deal. So far, KRW250 billion (USD175 million) has been secured, including KRW100 billion from engine parts manufacturer Inhwa Precision and KRW150 billion from Hyundai Glovis, a Hyundai Motor Group affiliate.

According to Chosun Ilbo, Hyundai Motor Group is also exploring further investment through affiliates Hyundai Commercial and Hyundai Motor Securities. If completed, Hyundai could become a significant shareholder in Air Incheon, expanding its footprint into the air cargo sector and the broader Korean aviation industry.

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