Air Incheon signs deal to acquire Asiana Airlines' cargo division

Air Incheon Co., a cargo specialist airline, is poised to become the second-largest air cargo operator in South Korea, following Korean Air Lines Co., with the acquisition of Asiana Airlines Inc.'s cargo division. Air Incheon announced on Thursday that it has signed a deal with Asiana Airlines for the acquisition of its cargo division. The sale involves separating Asiana's cargo business and merging it with Air Incheon. The deal will be finalized once Air Incheon completes a capital increase and pays 470b won ($322.5m) to Asiana Airlines by the end of June. The sale of Asiana's cargo division is a key condition set by the European Commission for approving the merger of Korean Air and Asiana Airlines. In June last year, Asiana Airlines selected Air Incheon as the preferred negotiator for the sale. Following the acquisition, Air Incheon will add 11 Asiana Airlines cargo aircraft to its existing fleet of 4, bringing its total fleet to 15.<br/>