South Korea’s Asiana Airlines has received additional loans from two state banks as it grapples with the coronavirus crisis, according to media reports.
The Korea Development Bank (KDB) and the Export-Import Bank of Korea will inject W1.7 trillion ($1.4 billion) into South Korea’s second-largest carrier, Yonhap and Reuters reported on Tuesday.
The banks had already extended W1.6 trillion of loans to loss-making Asiana last year.
Yonhap cited a KDB official as saying that the new funds were awarded to dispel growing concerns that the creditor banks’ plan to sell Asiana may fall through due to the impact of Covid-19.
A deal was signed in December for a Hyundai Development-led consortium to buy a 31% stake and invest in new shares to take over Asiana. However, the acquisition still requires regulatory approval in some countries and the spread of Covid-19 has raised doubts over the deal, according to South Korean media reports.
Like other carriers, Asiana is asking management to take pay cuts and putting staff on unpaid leave amid the crisis, which has grounded much of its fleet.
