Loading

Asiana Airlines restructuring gains urgency: increasing debt and lacklustre investor confidence

Asiana Airlines is restructuring to commit to a future of growth in aircraft, network and product, but is confronting increasing financial challenges. Profits have long been weakened by a business underexposed on long haul flying and overexposed on short haul routes, which are facing Chinese and LCC competition.

Asiana's debt ratio is again growing, reaching 877% in 3Q2017. Asiana's challenges will grow as it takes delivery of more aircraft. Korean Air's debt challenges occurred as it neared the end of a major aircraft delivery cycle. In comparison, Asiana's debt problems are occurring as it is still starting a delivery cycle. Asiana has more widebody aircraft on order than Korean Air. Airbus is likely sensitive to Asiana's difficulties, given that Asiana is a strong Airbus customer, operating both the A380 and A350.

This CAPA Premium Analysis article is 1,801 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com