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Philippine Airlines enlisted to help Jeju Air owner buy Asiana
September 27th 2019
Jeju Air’s main shareholder, AK Group, needs expertise and cash to take on Korea’s second largest airline. Read More »
Jeju Air’s main shareholder, AK Group, has confirmed to Invest Choshun that Philippine Airlines (PAL) will join its bid to buy Kumho’s holding in Asiana Airlines.
Jeju Air is Korea’s largest LCC and third largest airline in the country. Yet shareholder AK Group is not one of Korea’s heavyweight chaebols and it needs cash and expertise to secure its bid; one of four for Asiana. Korean media has speculated AK will need to find more equity investors.
It was not immediately apparent how PAL would contribute. It has been loss-making and has received a strategic investment from All Nippon Airways. Korean law prohibits foreigners from serving on airline boards even if the usual ownership and control restrictions are met.
