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KRMedicine2 days ago

Korean Air says Asiana integration costs could reach 1 tln won, offset by 2028

Korean Air Co. estimates that the integration of Asiana Airlines Inc. could incur costs up to 1 trillion won, but these expenses are expected to be offset by synergies from the merger by the end of 2028. During an investor relations session, Korean Air stated that integration costs are projected to range between 900 billion won and 1 trillion won, while annual synergy benefits are anticipated to reach approximately 300 billion won. Senior Vice President Park Hee-don expressed confidence that the integration costs would be fully offset by the end of 2028 or early 2029 if the process goes顺利. The

Korean Air Co. said Friday the cost of integrating Asiana Airlines Inc. could reach as much as 1 trillion won ($654 million), with synergies from the merger expected to offset the expense as early as the end of 2028.

During an investor relations session in Seoul, the flag carrier said an analysis of its post-merger integration strategy estimated integration costs at between 900 billion won and 1 trillion won, while annual synergy effects from the merger are projected to reach around 300 billion won.

"We expect the synergy effects could exceed the results of the PMI analysis," Park Hee-don, a senior vice president at Korean Air, said.

"If things go well, we believe the integration costs could be fully offset sometime between the end of 2028 and early 2029," he added.

The airline plans to complete the launch of the integrated carrier by Dec. 17, with the goal of becoming a global top 10 airline operating 230 aircraft and generating 23 trillion won in annual revenue.

Asked about the integration of the two airlines' mileage programs, Korean Air said it hopes the process can be finalized without delay ahead of its shareholders' meeting scheduled for August. (Yonhap)

Read the full article at The Korea Herald →
Source document: Korean Air Co.

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The Korea HeraldIndependentCenter2 days ago
Korean Air says Asiana integration costs could reach 1 tln won, offset by 2028

Korean Air Co. estimates that the integration of Asiana Airlines Inc. could incur costs up to 1 trillion won, but these expenses are expected to be offset by synergies from the merger by the end of 2028. During an investor relations session, Korean Air stated that integration costs are projected to range between 900 billion won and 1 trillion won, while annual synergy benefits are anticipated to reach approximately 300 billion won. Senior Vice President Park Hee-don expressed confidence that the integration costs would be fully offset by the end of 2028 or early 2029 if the process goes顺利. The

Bias read (Center): The article presents factual information regarding financial projections and strategic planning related to the merger of Korean Air and Asiana Airlines. It includes direct quotes from a company executive and provides specific figures without apparent bias or subjective language.

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  • organisation Yonhap

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  • organisationKorean Air Co.
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