Mirae Asset Group, the Seoul-based financial services group that won the bidding in November 2019 to acquire Asiana Airlines (OZ, Seoul Incheon) with HDC Hyundai Development, has shelved its plans to enter the aircraft leasing business, South Korea's business daily Maeil Business Newspaper has revealed.
Mirae affiliates Mirae Asset Capital and Mirae Asset Daewoo sought to establish a leasing company by the fourth quarter of 2020, most likely in Singapore, the newspaper initially reported in December, citing unnamed investment bank industry sources.
The aim, the sources said, was to maximise synergies with Asiana as a strategic investor rather than just as a financial investor. Asiana has long struggled with high leasing costs and would benefit from having an in-house supplier.
However, the Covid-19 crisis has cast doubt on the entire USD2 billion acquisition, according to a Maeil Business Newspaper report on April 14, even though Mirae Asset Daewoo and HDC have both assured the newspaper they remain committed to the deal.
A leasing company would have eased Asiana's debts by gradually replacing its majority-leased fleet from foreign companies with one supplied by an in-house business. Still, that plan will have little effect with more than 90% of the carrier's fleet grounded by the ongoing crisis.
Asiana Airlines currently leases 53 of its 84 aircraft from 23 different lessors, according to the ch-aviation fleets module. At its two subsidiaries, all 27 aircraft in the Air Busan (BX, Busan) fleet are leased from 17 lessors, while Air Seoul (RS, Seoul Incheon) leases all seven of its aircraft from five lessors.
