4 budget airlines shortlisted as candidates for Asiana Airlines’ cargo unit

SEOUL, Four low-cost carriers have been shortlisted as suitable candidates to acquire the cargo division of full-fledged carrier Asiana Airlines Inc., according to industry sources Tuesday. According to the sources, financial services firm UBS, tasked with selling Asiana Airlines' cargo division, has selected Jeju Air Co., Eastar Jet Co., Air Premia Inc. and cargo-focused Air Incheon as suitable candidates, and notified the companies of the decision earlier in the day. Asiana Airlines plans to sell its cargo division as part of conditions recently set by the European Union over the company's envisioned merger with industry leader Korean Air Co. due to competition concerns. The budget air carriers submitted their preliminary bids for the deal last week. UBS and Korean Air plan to conduct due diligence on the companies to select a final preferred bidder. Many of Asiana Airlines' cargo aircraft are known to be over 30 years old, leading to speculation that the acquiring company will need to invest significan tly in large-scale maintenance costs. Source: Yonhap News Agency