Korea Development Bank, Kumho Asiana Group's main creditor, stated Asiana Airlines is seeking to sell its 23.95% stake in Korea Express, South Korea's largest logistics company, to raise cash and improve the financial structure of Asiana Airlines (Chosun/Korea Times/Bloomberg, 17-Dec-2010). The companies are seeking to set a sale price and date by the end of Dec-2010 and announce a public bid in Jan-2011. KDB is also considering the sale of a 23.95% stake in Korea Express held by Daewoo Engineering and Construction, which it recently acquired by creating a private equity fund. Cash-strapped Kumho Asiana Group is South Korea's eighth-largest business conglomerate. Asiana Airlines reportedly has a debt ratio of 493% and has been put under a creditor-led restructuring programme.
Kumho Asiana to sell stake in Korea Express
You may also be interested in the following articles...
Delta-Korean Air joint venture creates trans-Pacific's second largest bloc. Cathay, EVA under threat
The unprecedented aviation market growth between Asia and North America is forcing airlines to re-evaluate their core strategy and reassess who is a competitor and who could be a partner. It seems probable that Delta Air Lines and Korean Air will form a joint venture, potentially making them the second largest trans-Pacific bloc.
The next two largest airlines without a deep partnership, EVA Air and Cathay Pacific, are having to confront significant change, without the support of partners. Delta-Korean Air brings United-ANA its closest rival yet, while the American-JAL JV – already smaller – needs bulking up.
Korean Air brings Delta a wider network in Asia than ANA or JAL offer to their respective JV partners, United and American. A Korean Air-Delta JV could result in more destinations and flights being added once they are able to sell jointly.
S7 Airlines Part 2: history of growth in fleet, pax, revenue & profit shows benign market structure
Part 1 of CAPA's analysis of the S7 Airlines Group examined its network and competitive positioning, particularly with respect to the Russian market leader Aeroflot Group. Away from its Moscow Domodedovo hub, S7 has pockets of strength serving cities in Asia from regional Russian airports.
This second part of the report on S7 highlights its respectable track record of growth in its operations and profitability since the establishment of its subsidiary Globus in 2008. In 8M2016 its passenger growth rate accelerated to 25%, after a 6% increase in 2015. Although demand for international air travel to/from Russia has slumped due to geopolitical developments, S7 has benefited from growth in the domestic market and from capacity cuts by foreign competitors on international routes. It has also benefited from the 2015 collapse of Transaero (although Aeroflot has gained more from this).