What is included in the’Korean Air + Asiana’ Integrated Plan | Save Internet New Daily

The first major content was caught up as’new business’. In addition to the existing passenger business, it emphasizes the growth potential of new businesses such as cargo, maintenance (MRO), and space industry for the purpose of investment by Korea Bank, the largest creditor.

To support this, last year’s results are presented. Korean Air made an operating profit of 238.3 billion won last year. Passenger revenue decreased by about 70% in the aftermath of Corona 19, but surplus surpassed expectations due to increased cargo and reduced fixed costs such as labor costs.

New business employment creation and MRO competitiveness are also highlighted.

Currently, other nationality companies except Korean Air leave the maintenance volume to the outside. Many of these are handled by Korean Air’s MRO. As a business that can generate stable profits, it was excluded from the sale last year to secure liquidity.

▲ Korean Air-Asiana company overview ⓒ Kim Soo-jung, graphic reporter

Korean Air’s position is that there is no monopoly when reflecting market characteristics such as competition among foreign airlines. In the merger plan, it is said that the market share based on slots (flight time, number of flights) will be emphasized, not the share of routes. The integrated company’s slot-based market share is about 38.5%.

In the case of a rate increase, it is not possible to check the rate by supervisory agencies such as the Fair Trade Commission and the Ministry of Land, Infrastructure and Transport. From the beginning of the deal, the Ministry of Land, Infrastructure and Transport has emphasized that “there will be no damage to consumers due to freight rate hikes after the merger between the two companies.” Government-level measures such as limiting the extent of annual fare increases are also expected.

Hwang Yong-sik, professor of business administration at Sejong University, said, “In fact, in the final stage of the acquisition, Korean Air will try to build trust and bonds with the Korea Development Bank and consumers regarding the acquisition of Asiana.” It is expected to convince the company’s investment justification.”