Logo of Phnom Penh Post newspaper Phnom Penh Post - Iata exec says maybe more M&As in aviation

Iata exec says maybe more M&As in aviation

Content image - Phnom Penh Post
Korean Air is set to take over Asiana in a deal backed by Seoul. YONHAP NEWS AGENCY

Iata exec says maybe more M&As in aviation

The aviation industry could see more consolidation between airlines from the same country in the wake of Korean Air and Asiana Airlines acquisition deal, International Air Transport Association (Iata) regional vice-president for the Asia-Pacific Conrad Clifford said on November 25.

He told an online media briefing: “We’ve had a number of airlines who’ve tried to set up regional operations but they’ve tended to be challenged by the ownership and control rules that apply in different countries with respect to air operator certificates.

“I would think that cross-border consolidation is probably going to be unlikely. But consolidation within countries, I would think that’s certainly a possibility.”

His comments came on the same day as the Seoul Central District Court heard an injunction case brought by private equity fund KCGI, which leads a three-way alliance that owns a 46.71 per cent stake in Hanjin KAL – the holding company of Hanjin Group – alongside Bando Engineering & Construction, and Cho Hyun-ah, who is the current chairman’s sister.

If the fund’s injunction request is accepted, the high-profile acquisition deal between Korean Air and Asiana Airlines could break apart, leaving Asiana Airlines under the control of its current creditors including the state-owned Korea Development Bank.

The group led by KCGI has opposed Korean Air’s move to acquire Asiana Airlines since the acquisition plans emerged.

In a statement on November 25, Hanjin Group accused the equity fund of putting its profit before 100,000 people’s jobs and warned that KCGI’s injunction could lead to the collapse of South Korea’s aviation industry.

Later in the day, KCGI accused Hanjin Group of using jobs as leverage to push through the acquisition deal.



  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • PM asks India for vaccine help

    Prime Minister Hun Sen is seeking assistance from India for the provision of Covid-19 vaccines as the country has produced its own vaccine which is scheduled to be rolled out to more than 300 million Indians this year. The request was made during his meeting with

  • One million Chinese Covid-19 jabs to start rolling in from February

    The government has confirmed that Covid-19 vaccines from China are set to begin arriving in Cambodia by February. This came as the Ministry of Health recorded two imported cases of Covid-19 on January 18. While calling on people to remain vigilant against the pandemic, ministry spokeswoman