Jeju Air drops Asiana cargo business sale bid

[Courtesy of Asiana Airlines]

Asiana Airlines’ cargo business sale drew interest from several South Korean flag carriers including Eastar Jet and Air Incheon, but Jeju Air, initially seen as a key contender, ultimately opted out. Air Premia, previously considered a weaker candidate, has now partnered with Korean private equity firm MBK Partners and set the stage for a fierce three-way competition. While Asiana Airlines and Korean Air are involved in selecting the preferred bidder, the European Commission is also expected to have a significant influence on the decision-making process after reviewing the candidates.

According to industry sources on Thursday, Asiana Airlines and its deal manager UBS conducted the final bidding for the sale of Asiana Airlines’ cargo business with Air Premia, Air Incheon, and Eastar Jet listed as the three final participants.

Jeju Air, Korea’s top low-cost carrier, was shortlisted as a qualified buyer but Aekyung Group ultimately made an internal decision to abstain from the acquisition process. The deal manager even extended the deadline to 3 p.m. as Jeju Air decided not to submit a proposal.