Korean Air to present Asiana ‘integration plan’ in March

Korean Air will prepare an “integration plan” by March relating to its acquisition of embattled rival Asiana Airlines, as it vows not to cut any jobs following the consolidation of the two carriers. Korean Air president Woo Kee-hong, speaking at a virtual press briefing on 2 December, states that the next three months will be spent conducting due diligence “intensively” on Asiana. “In particular, [we] aim to understand the overall situation of Asiana, such as cost structure and contract relations [including those relating to aircraft],” Woo says. The integration plan, to be unveiled by 17 March, 2021, will also see both carriers’ low-cost units — Jin Air, Air Busan and Air Seoul — merged into a single entity. Woo’s comments come a day after a Seoul district court quashed an injunction sought by Korean Air shareholder and private equity fund Korea Corporate Governance Improvement (KCGI) to block the proposed acquisition. Korean Air on 16 November announced its intention to take over its rival, in order to ““stabilise the Korean aviation industry”, which has been impacted by the coronavirus outbreak. Asked at the briefing about any potential job cuts arising from the integration — a concern raised by the unions — Woo says Korean Air has “no plans to reduce supply”. <br/>