Asiana Airlines could become another aviation casualty of the coronavirus pandemic.
Korean Air is alleged to be in talks to purchase up rival Asiana Airlines in what could be a large shake-up of South Korea’s aviation trade.
Asiana has struggled for a number of years, and in June revealed its carried money owed exceed US$11 billion.
South Korean media are reporting that Hanjin Group, which owns Korean Air, is in discussions with Korea Improvement Financial institution – Asiana’s largest creditor – to purchase the troubled airline, and plans to submit a ‘letter of intent’ to the financial institution this month.
A spokesperson for Hanjin Group has instructed media that nothing has but been determined.
The acquisition of Asiana by Korean Air would mark the nation’s quantity two airlines as one other aviation casualty of Covid-19, and rob Star Alliance of a serious accomplice in East Asia, as Korean Air belongs to rival SkyTeam.
Asiana was already available on the market earlier than Covid-19 struck, with a consortium of Hyundai Improvement and Mirae Asset Daewoo planning to purchase the airline for US$2.25 billion in December 2019, however, the deal collapsed within the wake of the coronavirus pandemic and its influence on Asiana.
Synergies between Asiana Airlines, Korean Air
Each Asiana and Korean Air have an intensive fleet of the twin-aisle planes, with an important overlap between the 2.
The world’s largest passenger airplane, the Airbus A380, is one such jet operated by each – Asiana has six, Korean has ten – with the Airbus A330-300 additionally a workhorse of the 2, with Asiana having 15 and Korean Air having 21 A330-300s, in addition to eight smaller A330-200s.
Boeing 777s additionally function in every airline’s fleet. Korean Air has 44 in whole, break up throughout 26 Boeing 777-300ERs, 4 Boeing 777-300s, and 14 Boeing 777-200ERs: the latter of which, Asiana has 9.
Each airway has older planes that will be progressively phased out, though Asiana maintains a bigger depend of getting older jets with one Boeing 747-400 and 15 Boeing 767-300s, and Korean having simply two Boeing 747-400s in passenger format.
Relating to newer and extra fuel-efficient planes, nevertheless, the 2 airways charted two totally different paths.
Asiana opted for the Airbus A350-900, which it had been utilizing on flights to and from London (with 11 in its fleet), whereas Korean Air counts 10 Boeing 787-9s amongst its ranks, which have been getting used on routes to Sydney and Brisbane previous to Australia’s border closure.
Persevering with on the Boeing monitor, Korean Air can also be one in every of simply three passenger airways to fly the ‘new jumbo‘, with 17 Boeing 747-8s, which the airline additionally flew to Sydney once in a while, along with its Airbus A380s at peak instances.
Asiana’s fleet contains simply six single-aisle Airbus planes, versus Korean Air’s choice once more for Boeing, with 28 Boeing 737s, plus 10 of what has been initially Bombardier C Collection jets, however, at the moment are branded as Airbus A220s.
Similarities in premium passenger service
Again in 2019, each Asiana Airlines and Korean Air confirmed a major winding again of the first-class service within the sky.
Asiana determined to follow the lead of Malaysia Airlines the 12 months prior, rebranding first class as ‘Business Suites’ – nonetheless being higher than customary enterprise-class, however without the ‘first-class’ title as many company journey insurance policies prohibited.
In the identical month, Korean Air stopped selling first class on a few of its planes, together with Airbus A330s and Boeing 787s as had been flying to Australia, recognizing that the first-class seats Korean had been providing on these jets have been already near-identical to business class.
Korean does nonetheless provide first-class throughout a few of its fleet, together with the Airbus A380, and maintains a separate lounge for first-class passengers at Seoul’s Incheon Airport, that can’t be accessed by elite frequent flyers primarily based on standing alone.
Neither airline gives a premium financial system – the closest factor being Asiana’s Financial system Smartium part on the Airbus A350, however which is solely a financial system ‘additional legroom’ product, supplied in a regular financial system seat with customary financial system service.
Each airway is additionally identified for flying a variety of enterprise-class seats throughout several types of the plane: some having direct aisle entry for each passenger, and others not.
