Creditor bank considering deal for Asiana Airlines to be sold to Korean Air's parent

Asiana Airlines' main creditor said Friday it was considering a deal for the debt-ridden carrier to be sold to the parent company of rival Korean Air Lines. Shares in Asiana, which is saddled with some $11.5b in debt and saw talks to another group collapse in September due to the coronavirus pandemic, surged more than 10% on the news, valuing it at just under $900m. Hanjin Group, the owner of South Korea’s top airline Korean Air, has been in talks with main creditor Korea Development Bank (KDB) and will submit a letter of intent to the bank as early as next week, the Korea Economic Daily reported. KDB said a purchase by Hanjin Group was one option under consideration but did not say what the other options were. Asiana declined to comment while Hanjin Group said nothing has been decided. “The sale itself is a good news for Asiana Airlines ... Korean Air will likely benefit from the country’s No. 2 full service carrier dropping out of competition, while the integration may bring positive outcomes for South Korea’s aviation industry,” said Lee Han-joon, an analyst at KTB Investment & Securities. Lee said Asiana might need to find other buyers for two budget carriers, Air Busan and Air Seoul, as Korean Air has its own budget affiliate Jin Air.<br/>