Will Asiana Airlines become next Eastar Jet?

Hyundai Development Company's (HDC) planned takeover of Asiana Airlines appears to be on the brink of collapse, following the former's official request for another round of due diligence on the cash-squeezed air carrier, aviation industry officials and analysts said Monday. HDC is putting the blame for the delay in negotiations on Kumho Industrial, which had decided to sell its airline unit, claiming that the latter has failed to send formal data related to the carrier's financial status, despite repeated requests since early April. This was seen by some industry officials as HDC making excuses in preparation for abandoning its planned acquisition of the indebted carrier, while others speculated that HDC may be moving to reduce the price. HDC signed an agreement to purchase a controlling stake in the carrier, held by Kumho Industrial, Dec. 27, but the negotiations between the two sides have made slow progress due mainly to the COVID-19 pandemic. Concerns have been raised over the possible collapse of the deal, especially after Jeju Air decided last week to abandon its acquisition of cash-strapped Eastar Jet because of growing uncertainties in the aviation industry caused by the prolonged pandemic. <br/>