- Joe Breitfeller
Asiana Acquired by South Korean Construction Firm HDC Hyundai Development for US$2.2B
Channel News Asia (CNA) reported Friday that Asiana, South Korea’s second largest carrier, has been acquired by a consortium led by the HDC Hyundai Development company for US$2.2 billion.
On Friday, Channel News Asia (CNA) reported that a consortium led by South Korean construction firm, the HDC Hyundai Development Company, closed on a deal to acquire controlling interest in the beleaguered carrier for 2.5 trillion won or US$2.2 billion. The airline currently has debts of around 3 trillion won. Earlier this year, Kumho Industrial, the carrier’s largest shareholder put their 31% stake in the airline up for sale. The deal announced today also includes Asiana subsidiaries Air Seoul and Air Busan. In a statement regarding the acquisition, HDC Hyundai Development Company’s CEO, Chung Mong-gyu said,
“We will immediately get into the process of taking over Asiana Airlines to (financially) stabilize the company.”
Asiana has been crippled by both a trade dispute with Japan as well as a weaker won against the US dollar. Last year, after switching caterers, the airline had to apologize to passengers after some aircraft departed without provisions. The airline’s reputation was also badly damaged on July 6, 2013 when Asiana flight #214, a Boeing 777-200ER, impacted the seawall at San Francisco International Airport (SFO) when landing. The accident resulted in three deaths and 187 injuries, including 49 serious injuries and was largely attributable to pilot error and training deficiencies at the carrier.
Source(s): CNA/Agence France-Presse (AFP)