Asiana Airlines downplays impact of fine for price fixing

By Nam Kwang-sik
SEOUL, April 10 (Yonhap) -- Asiana Airlines, South Korea's second-largest
carrier, said Friday that its financial health is unlikely to be hurt by a fine
imposed by the U.S. government for fixing passenger fares and cargo rates.
The U.S. Justice Department said Thursday it had fined Asiana Airlines US$50
million for colluding with its rivals to rig rates on international passenger and
cargo flights between 2000-2006.
"We expect that the payment of the fine will have little impact on our financial
health, because we will make the payment in six installments over five years,"
Asiana Airlines said.
Last month, the carrier sold bonds with warrants worth 100 billion won to prop up
its financial health.
In an effort to bolster its financial profile, Asiana Airlines, a unit of Kumho
Asiana Group, also plans to secure 711.3 billion won during the first half of the
year through a capital reduction of Korea Express Co., a logistics unit of the
group.
The airline spent 1.4 trillion won in February last year, when the group bought
Korea Express for 4.1 trillion won. Asiana Airlines holds a 24 percent stake in
the logistics company.
Asiana Airlines is targeting 4.5 trillion won in sales this year and is hoping to
turn itself around if oil prices and the local currency remain favorable.
ksnam@yna.co.kr
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