Air Incheon reportedly picked as preferred bidder for Asiana Airlines' cargo unit

Air Incheon, South Korea's cargo airline, has been reportedly selected as the preferred bidder to acquire the cargo division of full-fledged carrier Asiana Airlines, according to industry sources Friday. The cargo-only airline outbid three competitors – Jeju Air, Eastar Jet and Air Premia – in a bidding process, which started earlier this year. Korean Air Lines, South Korea's flagship air carrier, which is pursuing a merger with Asiana Airlines, will hold a board meeting next Monday to approve the sale plan of Asiana's freight unit, the sources said. Korean Air plans to complete the sale process by the end of this year. The sale of Asiana Airlines' cargo division is part of conditions recently set by the European Union due to competition concerns related to the merger. Korean Air has secured approval from 13 countries and regions, including the EU, and is waiting for final approval from the United States. Asiana Airlines' cargo business unit is known to generate revenue of over 1t won ($749.4m) annually. The cargo division deal is expected to be concluded at around 500b won.<br/>