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Asiana Airlines union requests EU probe suitability of Air Incheon’s purchase of company cargo biz


A labor union of Asiana Airlines Inc., South Korea’s second-largest full-service air carrier, said Tuesday it has requested that the European Union investigate the suitability of Air Incheon’s prospective purchase of Asiana’s cargo division.

The sale of Asiana’s cargo division is part of conditions set by the EU’s antitrust regulator in Korean Air Co.’s plan to acquire Asiana Airlines. Air Incheon was picked as the preferred bidder for Asiana’s cargo business in June.

Korean Air, the country’s No. 1 air carrier, and Air Incheon concluded their contract negotiations earlier in the day and are expected to sign a memorandum of agreement Wednesday.

The pilots’ union of Asiana, which has opposed the Korean Air-Asiana merger, said it visited the European Commission (EC), the executive body of the EU, in Brussels on July 23 to meet with officials involved with reviewing the merger case.

“We requested a thorough investigation into Air Incheon’s suitability as a buyer for the cargo business,” the union said in a
release.

Furthermore, the union urged the EU to consider a method that would ensure the employment of affected cargo pilots to remain with Asiana, instead of their employment being transferred to Air Incheon.

According to the union, EC officials stated that it cannot intervene in the employment relationship between Korean Air or Asiana Airlines and their employees. The commission, however, said it would thoroughly review the union’s request and the merger-related details.

Korean Air responded to the union’s release by stating, “We cannot disclose detailed information about the EU consultations.”

“We plan to proceed with the sale of the cargo business according to the scheduled timeline without any issues,” the company added.

Source: Yonhap News Agency