Jeju Air has officially withdrawn from the competition to acquire the cargo business of Asiana Airlines, leaving Eastar Jet, Air Incheon, and Air Premia as the remaining contenders. This development was confirmed through a Korean Stock Exchange filing by Jeju Air on April 25, after the airline chose not to participate in the second round of bidding managed by UBS, the sale advisor.
The sale of Asiana’s cargo business, which includes a fleet of eleven freighters along with valuable slots and air rights, is a strategic move designed to facilitate the merger of Asiana Airlines with Korean Air. The merger, still pending approval from the US authorities, has already received conditional approval from the European Commission, contingent upon the divestiture of the cargo division.
Jeju Air, a low-cost carrier that had participated in the initial bidding round and conducted due diligence earlier in the year, did not disclose reasons for its decision to bow out of the current bidding process. Another South Korean airline, Aero K (RF, Cheongju), also previously showed interest in the cargo unit but ceased discussions earlier this month.
The remaining bidders—Eastar Jet, Air Incheon, and Air Premia—are all backed by private equity, highlighting the significant investment interest in the profitable cargo sector. The expected sale price for Asiana’s cargo business is estimated between KRW 300 billion and KRW 500 billion (USD 218-363 million), with the deal likely including the assumption of considerable debt.
Asiana, Korean Air, and UBS are expected to select the preferred bidder in May, with the European Commission also required to approve the prospective buyer. The entire sale process aims to conclude by the end of the year, contingent upon the finalization of the Korean Air-Asiana Airlines merger by US regulatory authorities.
