Meanwhile, Asiana’s new owner HDC Hyundai Development Company said that despite the latest struggles, there will be no change in its plan to acquire the company at 2.2 trillion won ($1.85 billion). Cookie Policy In a letter sent to Asiana employees, the air carrier’s CEO Han Chang-soo said that the company has activated an emergency business management due to the crisis following the epidemic outbreak. In the interest of the safety of customers, Star Alliance member airlines have agreed to a common set of health and hygiene safety measure. Asiana shareholders approve airline's capital reduction plan, South Korea's Asiana Airlines is struggling to weather the coronavirus pandemic. Entry restrictions due to the spread of the COVID-19 are updated per country as follows. SEOUL: South Korean flag carrier Korean Air said Monday it will buy out its smaller, troubled rival Asiana Airlines in a $1.6 billion deal as it looks to consolidate with the global aviation sector devastated by the coronavirus pandemic. Answer 21 of 198: Hi, everyone, I bought tickets on Asiana in January for trip (April 8-18) to Japan with one day/night layover in Seoul on the way back to JFK. The information below is intended to provide minimal information on the status of the country-specific entry restrictions related to COVID-19, and does not guarantee the departure/entry of passengers. For more news about the novel coronavirus click here. {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}}. To help finance the deal, Korean Air plans to sell up to $2.25 billion worth of shares early next year. "Once Korean Air completes its acquisition of Asiana Airlines, the airline is expected to be ranked as one of the top 10 airlines in the world." Get trusted insights from experts within Asia itself. to learn how you can update your cookie settings. Asiana Airlines Inc. could follow suit with an ... or collapsing altogether because of the impact Covid-19 has had on travel. The nearly two-hour journey will take place on an Asiana A380 superjumbo passenger jet that has been grounded in the wake of the coronavirus pandemic. Kumho Petrochemical, the second-biggest shareholder with an 11.02% stake, was absent from Monday's shareholders meeting. CAPA publishes more than 400 global News Briefs every weekday, covering all aspects of the aviation and travel industry. Those present at the meeting control 41.8% of the voting rights in the airline. Because of a spike in the number of people in Korea testing positive for COVID-19, Asiana Airlines has backtracked on its idea of offering international flights to nowhere. The majority Asiana stake is held by Kumho Industrial Co., an affiliate of airline-to-petrochemical conglomerate Kumho Asiana Group. CAPA News Briefs. Han said that he himself would return 40 percent of his annual salary, while other executives will return 30 percent and division leaders will return 20 percent of their annual pay. One-third of aviation routes have closed since Covid-19 decimated … Shares of Asiana closed down 10.96% to 4,470 won on Monday. The Inquirer Foundation supports our healthcare frontliners and is still accepting cash donations to be deposited at Banco de Oro (BDO) current account #007960018860 or donate through PayMaya using this link . Kumho Petrochemical has publicly opposed the capital reduction plan, saying the major stakeholder should take bigger responsibility for the company's current situation by giving up more shares than other shareholders. Please review our Han said that all executives, including himself, have requested to resign to share the burden of the company’s difficult business situation, as part of a self-rescue plan to dramatically “cut down anything that is not related to boosting the company’s profitability.”. In a statement, Hanjin said the deal to acquire Asiana will “stabilise the Korean aviation industry, which is suffering from the COVID-19 pandemic.” “The company made the decision to help the country’s airline industry continue to grow (amid uncertainties) and minimise the injection of public funds (into Asiana),” Korean Air Chairman Cho Won-tae said in a statement . Call 896 6000. Earlier today, Korea’s second-largest airline said it was canceling its international flights to nowhere due to the coronavirus’s resurgence. Tickets purchased via Asiana Airlines website/mobile or reservation center Reservation Center Korea : +82-2-2669-8000 U.S. : +1-800-227-4262 China : +86-10-8451-0101 Japan : +81-3-5812-6600 Other office : Contacts >> B. South Korea's Asiana Airlines is struggling to weather the coronavirus pandemic. In September, Asiana's creditors -- the KDB and the Export-Import Bank of Korea -- decided to end a drawn-out deal to sell Asiana to a consortium led by HDC Hyundai Development Co. over differences over terms of the deal amid the extended COVID-19 … Earlier today, Korea’s second-largest airline said it was canceling its international flights to nowhere due to the coronavirus’s … Asiana Airlines commences international transport of COVID-19 vaccines. Korean Air confirms plan to buy troubled Asiana Airlines for US$1.6bn. Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. By continuing to browse this website, you accept cookies which are used for several reasons such as personalizing content/ads and analyzing how this website is used. But Asiana Airlines officials said the voluntary resignations are not to be accepted right away, as the company needs them to operate. More than 96% of those who participated in the extraordinary shareholder meeting voted in favor of the plan, under which three common shares in Asiana will be worth one, with no compensation to the shareholder. Due to the latest outbreak of the novel coronavirus that is believed to originate in Wuhan, China last month, Asiana Airlines has reduced 79 percent of its China routes and 25 percent of flights to Southeast Asian countries. Sign up to our newsletters to get our best stories delivered straight to your inbox. Star Alliance Hygiene Safety Commitment. To save costs, the company will further cancel or minimize the planned events, including the company’s 32nd celebration of the founding day and the reward bonus for celebration, Asiana said. Read more. (Only 1 can be used per ticket, and cannot be applied to additional itineraries after being applied to a one-way ticket.) A labor union of pilots said that they agreed for all pilots to take 15 days of leave and return 50 percent of their bonus pay. SEOUL — Korean full-service carrier Asiana Airlines said Tuesday that all executives, including the CEO, have offered to resign to improve the company’s financial health, which has been severely hurt by the latest outbreak of the coronavirus that has cut into aviation services. Asiana Airlines flight 729 departed the gate at Seoul Incheon international airport on schedule at 10:10 a.m. on Saturday, and a few minutes later took off … The reduction in share capital will help Asiana offset part of its deficit, which reached 1.5 trillion won ($1.3 billion) as of September, up from 881 billion won in December 2019. Asiana Airlines CEO Han Chang-soo (Asiana Airlines). Korean Air says it will acquire Asiana Airlines for $1.62 billion in a major restructuring of the Korean aviation market as the global coronavirus pandemic batters the industry worldwide. The airline, like many around the world, has been hard hit by the coronavirus pandemic and resulting travel restrictions. The majority Asiana stake is held by Kumho Industrial Co., an affiliate of airline-to-petrochemical conglomerate Kumho Asiana Group. Mirroring its impact on aviation, the COVID-19 pandemic has had a significant impact on airline companies due to travel restrictions and a slump in demand among travelers. US-Asia Ticket Change Guideline for COVID-19 Coronavirus (As of April 7, 2020) views ... A. HDC, a mid-sized builder, gave up on buying Asiana in September as the coronavirus pandemic devastated the airline industry. The vote comes as the South Korean government seeks to engineer a deal by which Korean Air will take over Asiana to create a single national flag carrier. Nikkei Inc. No reproduction without permission. Asiana Airlines is the latest carrier to cut back on its Hawaii service as travel demand drops in the wake of the global spread of the new coronavirus. To find out more, please click this link. This content was commissioned by Nikkei's Global Business Bureau. The share capital reduction plan slashes Asiana's capital to 372.1 billion won from 1.1 trillion won, and its total number of shares will fall to 74.41 million from 223.2 million previously. For more information on COVID-19, call the DOH Hotline: (02) 86517800 local 1149/1150. By continuing, you are agreeing to our use of cookies. The acquisition process has been underway since last year, while the process will be completed after a due diligence review, HDC said. This story is part of AIN 's continuing coverage of the impact of the coronavirus on aviation. © Getty Images, Korean airline merger faces debt burden and antitrust concerns, Korean Air's Asiana deal hits turbulence as stakeholder objects, Korean Air to take over Asiana in $1.62bn deal backed by Seoul, Asiana Airlines shares jump as Seoul considers sale to Korean Air, South Korea's airline M&A left adrift by the pandemic. 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