Route Network Update for Asiana Airlines
20.07.2021 – 17:59 UTC
Air Busan (BX, Busan) plans to conduct a large-scale capital increase in the second half of the year, selling stocks to raise KRW250 billion won (USD217 million) and deploying the proceeds to finance its operations.
The regulatory filing came as Air Busan shares resumed trading on the KRX exchange on July 16. Trading in the Asiana Airlines (OZ, Seoul Incheon) subsidiary had been suspended on May 26 on the grounds of capital erosion and also as part of a probe into Park Sam-koo, former chairman of Asiana parent Kumho Asiana Group.
In the stock offering, Air Busan will issue around 111.85 million common shares at a price of KRW2,235 (USD1.94) per share after an allocation to the company’s shareholders. Asiana Airlines said it would acquire 43,782,819 shares for about KRW97.9 billion (USD85 million).
The majority of the low-cost carrier’s shares, about 54%, are free-floating. After the stock acquisition, Asiana’s stake in Air Busan will rise to 40%. The expected date of the acquisition is October 1.
Air Busan said…
13.07.2021 – 05:47 UTC
The integration of Korean Air (KE, Seoul Incheon) and Asiana Airlines (OZ, Seoul Incheon) will cost about KRW600 billion won (USD522 million) more than previously thought, local media reported on July 11.
The flag carrier’s parent, Hanjin KAL Corporation, agreed to buy Asiana in November for KRW1.8 trillion (USD1.57 billion) through the acquisition of new shares and perpetual convertible bonds.
But according to data obtained by Park Sang-hyuk, a member of the National Assembly for the ruling centrist Democratic Party, Hanjin will have to pay a total bill of around KRW2.4 trillion (USD2.09 billion) for the acquisition and post-merger integration, a process that will take more than two years.
Merging the two full-service airlines’ information technology systems will absorb most of the integration budget, Park claimed, including combining their booking and ticketing systems, customer databases, crew training systems, and loyalty schemes. However, the costs of integrating two loyalty programmes can be avoided if Korean Air runs a set of promotions aimed at using up Asiana’s air miles.
Korean Air has already…
12.07.2021 – 07:29 UTC
Mongolia’s new Ulaanbaatar Int’l airport has officially opened for commercial operations in what is being hailed a significant development for the economic growth of the landlocked country in north-central Asia.
Speaking during the July 4, 2021, opening ceremony, Mongolian President U.Khurelsukh said the new airport, situated 50 km south of the capital Ulaanbaatar, would boost air logistics hub growth and hoick tourism and the economy.
Originally scheduled to commence operations in 2020, the opening was delayed because of COVID-19, with Mongolia only having resumed scheduled international traffic on June 1 since going into lockdown in February last year.
Politically seen as a symbol of Japan’s longstanding economic support to Mongolia, the new airport has cost JPY65.657 billion yen (USD595.8 million), 90% financed through a loan from the state-owned Japan International Cooperation Agency (JICA) and 10% by the Mongolian government. The project…
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