Jeju Air to take over troubled Eastar Jet
Jeju Air has signed a memorandum of understanding to take over Eastar Jet, which has faced financial difficulties to expand its presence in the local aviation market. According to the airline, the MOU was inked Wednesday, under which it will take over a 51.17% stake in Eastar Jet for US$60m, and the two sides are scheduled to sign a sales and purchase agreement within this year. The MOU was proposed by Jeju Air to gain a competitive edge in the aviation market and to increase economies of scale. The two airlines plan to expand market share in both the domestic and international aviation markets, according to Jeju Air. The move comes as Korea's budget carriers have been suffering from declines in earnings, hit hard by the "Boycott Japan" movement. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-12-19/unaligned/jeju-air-to-take-over-troubled-eastar-jet
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Jeju Air to take over troubled Eastar Jet
Jeju Air has signed a memorandum of understanding to take over Eastar Jet, which has faced financial difficulties to expand its presence in the local aviation market. According to the airline, the MOU was inked Wednesday, under which it will take over a 51.17% stake in Eastar Jet for US$60m, and the two sides are scheduled to sign a sales and purchase agreement within this year. The MOU was proposed by Jeju Air to gain a competitive edge in the aviation market and to increase economies of scale. The two airlines plan to expand market share in both the domestic and international aviation markets, according to Jeju Air. The move comes as Korea's budget carriers have been suffering from declines in earnings, hit hard by the "Boycott Japan" movement. <br/>
