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Restructuring Asia Airlines Aviation… Leading to the LCC Asian Economy




[아시아경제 유제훈 기자] The focus is on whether Asian Airlines restructuring of the aviation industry will expand into the LCC industry. This year, LF's profitability has dropped as a result of oversupply and from next year a total of nine LFS will compete, including new airlines.

According to the 17th aviation industry, the possibility of a resale of mid-level Air Busan is emerging, as the Hyundai Development-Mira CDC consortium Asset Daewoo has been selected as a priority acquisition negotiation before Asia Airlines.

Air Busan is a Champions League based in Busan and Giongam, with a 44.18% stake in Asia Airlines. It is the fourth largest industry in terms of sales and has provided many routes and slots (slots and hourly landings) from Gima International Airport.

When the HDC Group completes its acquisition of Asiana Airlines, Air Busan will be at the end of the management structure of the CDC Corporation HDC Hyundai Development Asiana Airlines Air Busan.

Restructuring Asia Airlines Aviation… Also Leads to LCC

The problem is that current monopoly and fair trade laws prohibit the maintenance of subsidiaries in domestic subsidiaries, except for the maintenance of the total number of issued shares. At HDC, the company has to acquire the remaining 55% stake in Air Busan within two years, or allow HDC Hyundai Development Co. to take over or resell its stake in Air Busan (44.18%) with Asian Airlines. Considering that Air Busan's market cap is estimated at W480bn, based on the previous day's close, this is not a significant amount.

The industry believes that Air Busan's direction may be determined by how CDC Group positions Asiana's position in the future. Jung Mong-gu, chairman of the CDC Group, said: "We will make a strategic decision in two years," he said. "We can either acquire (remaining shares) or buy a stake with our 'strategic partner'.

Air Seoul, another subsidiary of Asia Airlines, may also be sold. However, Air Seoul is 100% owned by Avian Airlines and does not violate regulations under the Fair Trade Act. An industry official said: "In the case of Air Busan, there are missing aspects (including Asiana Airlines), including maintenance, shipping rights and slots."

In addition to affiliate branches in Asia, some mid-level logic centers are also caught in a crisis of management. The main reason is the weakening demand for Japanese roads, which make up 20-30% of LCC sales, as a result of the conflict between Korea and Japan.

Experts believe that restructuring the LCF could be serious for less capital airlines as the industry cools down. Leaders like Jay Airl, who swallowed the problem during the acquisition of Asian Airlines, could accelerate the trend.

Lee Xvi-Young, a professor at Inha Technical College, said: "There is a lot of bad news in the aviation industry. The LCC market is expected to vary from now on. "

By Shuo aea-hoon, reporter kalamal@asiae.co.kr




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