The acquisition of the Asians airline will cost the South Korean airline in the region of $1.6 billion, it was Learnt.
Korean Air Lines is South Korea’s largest carrier. The acquisition, should it sail through will make the Korean airline the world’s 10th latgest airline by size of fleet.
Korean Air and its parent company Hanjin KAL decided to buy Asiana at board meetings held on Monday, according to a statement.
Korean Air spoke of great momentum to restructure the Korean aviation market, amid the unprecedented crisis faced by the global aviation industry due, to COVID-19.
Korean Air plans to increase raise 2.5 trillion wins worth of capital by issuing new shares early next year.
Kim Sang-do, deputy minister for civil aviation, spoke of an inevitable decision to integrate the country’s two biggest airlines to prevent them from suffering bigger losses, amid the COVID-19 pandemic, the South Korean agency Yonhap reported.