South Korea's Asiana Airlines is seeking to sell its catering unit and holdings in airport-related associate companies as it bids to raise 200 billion won ($153 million).
The loss-making carrier, South Korea's number two after Korean Air (KAL), says it is in negotiations with a number of parties and hopes to wrap up sales in December.
The airline hopes to sell a majority stake in its catering arm, but no decision has been taken on the size of stakes to be disposed of in airport associates. On the line are shares in 60%-owned Asiana Airport Services, 43%-owned Asiana Airport Development and 33%-owned Incheon International Airport foreign carrier cargo terminal.
Asiana has been suffering financially for some time and has cut services since the 11 September terrorist attacks in the USA. It is also planning to reduce staff numbers by at least 5%, and to raise $154 million by selling bonds to repay loans.
Asiana and KAL are to receive 900 billion won of aid in the form of government "soft loans", tax breaks on aircraft purchases and leases, and other relief including reduced tariffs on jet-fuel imports as part of a package agreed in Seoul in October.
Source: Flight International
