Korean Air closes deal for Asiana takeover

Korean Air closed its long-delayed deal to take over Asiana Airlines on Wednesday, paying the remaining 800b won ($558.58m) to secure a controlling stake in the cash-strapped airline. This allows the nation’s flag carrier to secure a stake of 63.88% in Asiana. Korean Air has so far injected a total of 1.5t won to complete the high-profile acquisition and launch the mega-sized full-service carrier. Starting Thursday, Asiana Airlines will be incorporated as a subsidiary of Korean Air. The converged carrier is set to become the world’s 11th largest airline by annual passenger volume. It will also operate a total of 238 aircraft and employ some 27,000 staff. Korean Air will manage Asiana Airlines as a separate entity for the next two years, while undertaking a comprehensive integration process, including aligning corporate cultures and merging their mileage programs. In January, the flag carrier plans to appoint new leaders for Asiana Airlines and its two low-cost carrier subsidiaries — Air Busan and Air Seoul — via Asiana's temporary shareholders' meeting as part of their first manpower adjustment. Story has full details.<br/>