Air Incheon is expected to rise to the second largest cargo operator in South Korea after Korean Air by acquiring the cargo division of Asiana Airlines. It aims to launch 'Integrated Air Incheon' in July, planning a new company name and aircraft repainting. However, there is significant backlash from some employees set to move from Asiana Airlines to Air Incheon. They are concerned that they will receive unfair treatment compared to Korean Air in terms of wages, benefits, and job stability.
According to the aviation industry on the 15th, Air Incheon is scheduled to sign the main contract for the acquisition of Asiana Airlines' cargo division on the 16th. Once the contract is finalized, Air Incheon will have a total of 15 aircraft, including 11 cargo planes from Asiana Airlines in addition to its existing four cargo planes, becoming the airline with the second most cargo planes after Korean Air (23 planes).
The current sale will proceed by partitioning the cargo division of Asiana Airlines and merging it into Air Incheon. Air Incheon plans to hold a shareholders' meeting soon to obtain approval for the partitioning and merger. The transaction will be finalized when Air Incheon pays a total of 470 billion won to Asiana Airlines through a paid-in capital increase.
Air Incheon is preparing for business expansion with the goal of launching 'Integrated Air Incheon' on July 1. To accommodate the growing workforce, they have decided to secure new premises at the Magok Wonk Grove Building in Gangseo-gu, Seoul. With approximately 800 employees from the cargo division of Asiana Airlines joining the existing workforce of about 200, around 1,000 people will be working there. Currently, Air Incheon has an office at the cargo terminal of Incheon International Airport and a Seoul office in the Ryeosan Building in Gangseo-gu, Seoul.
Air Incheon is also rapidly expanding its overseas routes. Recently, Air Incheon applied to the U.S. Department of Transportation for permission to operate cargo regular routes. Air Incheon previously did not have any routes to the Americas. Before the acquisition contract is finalized, they decided to first lease Asiana Airlines’ cargo aircraft. Air Incheon is discussing a plan to lease one B747-400F from Asiana Airlines.
The significant dissatisfaction among employees from Asiana Airlines who will move to Air Incheon poses a challenge. According to the sale conditions, employees working in the cargo division, including pilots, maintenance, and cargo sales staff, will transfer to Air Incheon. Some workers from general support departments will also be included. They believe there will be substantial differences in wages, job stability, and benefits between Korean Air and Air Incheon.
If Asiana Airlines is absorbed by Korean Air, the treatment of Asiana Airlines staff could improve to that of Korean Air. One of the airline's benefits includes flight discount privileges, but Air Incheon does not have passenger planes, making it difficult to enjoy related benefits. The fact that Air Incheon's largest shareholder is a private equity fund also raises concerns about the possibility of a resale in the future.
Air Incheon may also consider improving employee treatment to boost morale. Kim Kwan-sik, the representative of Air Incheon, noted, "Korean Air and Asiana Airlines are long-established large airlines (full-service carriers), so there will inevitably be differences compared to Air Incheon right away," adding, "Through this merger, we will work hard in management to generate more profits, enhance corporate value, contribute to our society, and share with our employees."