Report by : Gan Yung Chyan, KUCINTA SETIA
According to Korea Logistics ON News report on 1 April 2021, Korean Air’s President Woo Kihong stated at an online forum on the “Acquisition of Asiana Airlines Merger Plan” on 31 March that only through mergers and reorganizations can the airline’s financial structure be improved, maintain employment stability and the company's long-term survival and development.
Kihong stated that it will take about two years for Asiana Airlines to be fully integrated into Korean Air’s integration preparation as a subsidiary. If the aviation environment returns to the level before the covid epidemic, it will optimize the efficiency of repeated routes and increase joint risks. Investment (JV), etc., and effective use of facilities, manpower, terminal buildings, sales organizations, etc. to achieve economies of scale, the merger will generate 300-400 billion Won of synergy each year.
Regarding the company's concerns about the adjustment of the company's manpower structure, President Yu emphasized that after the merger, the manpower of various departments will be redistributed, but no artificial structure adjustment will be carried out. Through on-site investigations, the duplication of indirect manpower after the merger of the two companies is about 1,200. Considering that the two companies retire, resign and naturally reduce the number of personnel each year, this will not be a problem.
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