Asiana Airlines Pilots Union calls for Europe to assess Air Incheon's cargo division suitability

Asiana Airlines' labor unions deliver a joint statement at a press conference in central Seoul, July 11. (Yonhap)

The Asiana Airlines' Pilots Union has requested that the European Commission investigate the suitability of Air Incheon as a potential buyer of Asiana Airlines' cargo business, the union announced Tuesday. The move follows Korean Air's selection of Air Incheon as the preferred bidder for the sale of Asiana Airlines' global cargo freighter business on June 17, as part of its yearslong quest to formally acquire Asiana Airlines.

The union said Tuesday that it had asked the EU's antitrust regulator for a "thorough review of Air Incheon's qualifications" to acquire the cargo business during a recent meeting. The union had reportedly visited Brussels on July 23 to meet with EU officials charged with global business mergers.

The union emphasized that Asiana Airlines' cargo fleet is on average only three years from needing replacement, expressing concerns that "a small cargo airline with no long-distance flight experience" might struggle to effectively manage the acquisition. They also suggested that Air Incheon consider hiring cargo pilots on a temporary contract basis rather than through direct succession, should the European Commission approve the merger.

The European Commission responded that the sale of Asiana Airlines' cargo business, as detailed in the merger terms, includes existing labor agreements with pilots, and therefore the regulator cannot intervene in employment matters between Korean Air and Asiana Airlines employees. However, it assured the union it would carefully review the concerns and remain open to receiving additional information on the matter, as relayed by the pilots union.

On Feb. 13, the European Commission provisionally approved Korean Air's acquisition of Asiana Airlines, contingent upon it divesting Asiana Airlines' cargo division.

Korean Air and Air Incheon have finalized their contract negotiations and are scheduled to sign the master agreement for the sale of Asiana’s cargo arm on Wednesday.

By Kim Hae-yeon(hykim@heraldcorp.com)