Jeju Air, T'way to benefit from Korean Air's acquisition of Asiana

Jeju Air and T’way Air are expected to benefit from a planned acquisition of Asiana Airlines by Korean Air, as the integrated mega-sized carrier is set to transfer the rights of their lucrative businesses to the two low-cost carriers (LCC), according to industry officials, Tuesday. Shares of the nation’s two largest LCCs have been on course for a gradual recovery in recent weeks on growing hopes that they will be able to widen their revenue streams after the acquisition. Korean Air had to give up licenses for four European routes and sell Asiana’s cargo unit, as part of its remedy measures for European antitrust authorities to consider the possibility of approval. The European Commission (EC) is still reviewing the deal, but is known to have reached an internal consensus that it will grant a conditional approval for the acquisition. Earlier, the European watchdog shared its plan to finalize its decision by Feb. 14. Jeju Air is reviewing its own acquisition of Asiana’s cargo unit, in a move to diversify its sales channels in the post-pandemic era. Asiana’s cargo business is considered a stable revenue generator, chalking up 1.13t won ($849m) in sales in the first three quarters of last year. A spokesman at the nation’s largest LCC declined to confirm details on the matter, saying that nothing specific has been confirmed internally for the time being. Jeju Air's share price has been on a gradual recovery for the past three months in anticipation of the cargo business acquisition. It hovered at around 12,700 won as of Tuesday, up more than 20% from three months earlier. Story has more.<br/>