Asiana Airlines is considering a joint venture proposition from General Electric Capital (GECAS) to sell and lease back its diminishing fleet of Boeing and Airbus Industrie aircraft, as the cash strapped South Korean carrier's parent, Kumho Group, looks for ways to refinance the business.
The proposal would involve Asiana selling its aircraft to a planned new leasing company to be jointly established by GECAS, the Kumho Group and a third South Korean investor. Daewoo Heavy Industries, which is closely allied to Asiana, has been identified as one possible partner, as has one of the airline's main creditors, the Korean Development Bank.
Local sources suggest that Asiana's response to the GECAS proposal has been lukewarm. The carrier has preferred to pursue individual aircraft disposals and sale and leaseback deals as a way of injecting cash and combating mounting debts. Asiana has also appointed former Boeing South Korea president Don Myer as an advisor.
The airline has completed a sale and leaseback of its first Airbus A321 to GATX and is negotiating a similar arrangement for a second aircraft, due for delivery soon. Asiana also wants to sell a Boeing 747-400, another -400 combi and one 767-300ER, all of which are undelivered and in storage in the USA. Another three -400 combis in service are also earmarked for sale.
The carrier has been seeking a refund from Boeing of a $140 million deposit on its deferred 777 order, but with little success to date. The US manufacturer has agreed instead to remarket a 767-300 freighter and a second -300 passenger aircraft, due for delivery to Asiana in July and September 1999.
Korean Air (KAL) is studying the idea of launching a new regional service linking Seoul with the neglected south-west region of the Korean peninsular. The move is in response to election promises made by the country's new president, Kim Dae-jung, to improve services to the area.
KAL would require four aircraft and is evaluating 50/70-seat jets, including the British Aerospace Avro RJ70, Bombardier Canadair Regional Jet and the Embraer RJ-145. A major selection criterion is field performance, because of the 1,200m (4,000ft) runway length of many destinations, such as Cheonju, Namwon and Seosan.
Source: Flight International
