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Share trading halted [Asiana financial troubles]

Share trading halted [Asiana financial troubles]

Old Aug 19, 19, 10:12 am
  #106  
 
Join Date: Jul 2012
Location: SG & SYD
Programs: OZ Diamond
Posts: 175
https://www.businesstimes.com.sg/tra...siana-airlines
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Old Aug 20, 19, 5:00 pm
  #107  
 
Join Date: Jan 2010
Posts: 417
I just hit 40k/Diamond for the first time, so I fully expect them to either fold or at the very least withdraw from *A sometime between now and the end of November, when my next flight is scheduled. This is just how my life usually works out.

With all of the drama between ROK and JP, along with the continually worsening economic outlook throughout Asia and the world right now, I just do not have a lot of confidence for the long term health of OZ. Samsung seems to be hurting quite a bit lately, and KE just announced several flight cuts to JP in the midst of the current diplomatic/PR spat between the neighbors. It does not seem like any company in ROK is even financially well enough right now to want to take a gamble in the ever-unreliable airline industry, especially with a worldwide recession looming. Please correct me if I am wrong, as I am not claiming to be an expert on the current state of things in Seoul; I am only looking at the bigger picture from abroad.

I wonder if there is any chance of another *A airline offering status matches if OZ does indeed get swallowed up by KE or die by any other means? I already used my DL status match, and I really have no desire to stick with ST over *A.
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Old Aug 20, 19, 5:07 pm
  #108  
 
Join Date: Jun 2018
Posts: 40
Originally Posted by downinit View Post
I just hit 40k/Diamond for the first time, so I fully expect them to either fold or at the very least withdraw from *A sometime between now and the end of November, when my next flight is scheduled. This is just how my life usually works out.

With all of the drama between ROK and JP, along with the continually worsening economic outlook throughout Asia and the world right now, I just do not have a lot of confidence for the long term health of OZ. Samsung seems to be hurting quite a bit lately, and KE just announced several flight cuts to JP in the midst of the current diplomatic/PR spat between the neighbors. It does not seem like any company in ROK is even financially well enough right now to want to take a gamble in the ever-unreliable airline industry, especially with a worldwide recession looming. Please correct me if I am wrong, as I am not claiming to be an expert on the current state of things in Seoul; I am only looking at the bigger picture from abroad.

I wonder if there is any chance of another *A airline offering status matches if OZ does indeed get swallowed up by KE or die by any other means? I already used my DL status match, and I really have no desire to stick with ST over *A.
Did you read the news about Asiana closing for business somewhere? I have to plan on it if they are folding.
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Old Aug 22, 19, 5:35 am
  #109  
 
Join Date: Nov 2013
Location: NYC
Programs: OZ Diamond *A Gold / AF Silver
Posts: 401
Originally Posted by LMYRMQ622003250 View Post
Did you read the news about Asiana closing for business somewhere? I have to plan on it if they are folding.
No, he's using the current trade situation with Japan as a "reason" but I don't see how that is a reason. Samsung is a mastodon, they won't go down for that, and they are finding solution to that Japanese supplier issue anyway.

OZ is not a mastodon but they have been funded recently by the KDB (I think) so you should not have to worry about it for a while.
The objective is still for Gumho to sell OZ by this year. As long as KE does not buy OZ, and KE maintains its way of providing elite status, OZ will keep doing the same. I am not too worried about that piece.
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Old Aug 22, 19, 8:33 am
  #110  
 
Join Date: Jun 2014
Location: Seoul, Korea
Programs: Asiana Diamond, Delta Gold
Posts: 80
Yeah, I think a lot of people are spreading information about an economy they don't truly understand. I covered business news here for a while and so I feel I have a good grasp on how a lot of things run here. KDB (Korea Development Bank) is owned by the state and is currently one of the major creditors for Kumho and subsequently Asiana. They are the ones forcing Kumho to find a buyer as the debt ratio has become way too high for them and they want to avoid a larger collapse. If Samsung was actually hurting, the whole country would be in crisis. They bolster a considerable amount of the Korean economy right now.

In my opinion, OZ has a 0% chance of folding. It's too meaningful a company to the country. If anything, the government will provide a huge bailout to keep it afloat for a few years. While OZ is in a position to restructure a lot of things, including flight routes and aircraft choices, the reality is that poor management decisions and not an inherent unprofitability have led to this state. Just look at how Kumho attempted to secure more funding as a "stall tactic". The conglomerates in Korea will always try to take advantage of anything they can because they know what they mean to the national economy.
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Old Sep 13, 19, 2:42 am
  #111  
 
Join Date: Jul 2012
Location: SG & SYD
Programs: OZ Diamond
Posts: 175
https://simpleflying.com/asiana-airl...n-process/amp/
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Old Sep 13, 19, 9:47 am
  #112  
 
Join Date: Aug 2008
Location: Jomtien (Pattaya) Thailand
Programs: UA Gold
Posts: 579
From that article, headlined "Four Entities Shortlisted In Asiana Airlines Acquisition Process":

Having appointed Credit Suisse to handle the sale, people familiar with the goings-on at Asiana told the Yonhap News Agency that four bidders were now on a shortlist. The four companies looking to acquire a controlling stake in Asiana Airlines are:
  • The Aekyung Group: A conglomerate involved in everything from cosmetics-to-healthcare that that is familiar with the airline industry due to its ownership of low-cost carrier Jeju Air Co.
  • Mirae Asset Daewoo: Korea’s largest investment banking and stock brokerage company following Mirae Asset Securities and Daewoo Securities joining forces in 2016.
  • Hyundai Development Company (HDC): The HDC is a South Korean conglomerate that has subsidiaries in retail, construction, leisure, sports, petrochemicals, and healthcare.
  • Korea Corporate Governance Improvement (KCGI): KCGI is a Korean private fund that invests in multiple projects.
  • Stonebridge Capital: A Korean venture capital company that invests in projects that show potential for long-term growth.
Isn't that *five* entities?
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Old Sep 13, 19, 2:13 pm
  #113  
 
Join Date: Nov 2013
Location: NYC
Programs: OZ Diamond *A Gold / AF Silver
Posts: 401
3 private equities? That would be the worst outcome ever.
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Old Sep 14, 19, 2:44 am
  #114  
 
Join Date: Jun 2019
Programs: Marriott Titanium; WN A-list; UA Silver
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Originally Posted by 1984SW View Post
From that article, headlined "Four Entities Shortlisted In Asiana Airlines Acquisition Process":



Isn't that *five* entities?
The last two, KCGI and stonebridge, have a joint bid, so I think they count as one.
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Old Oct 18, 19, 2:12 pm
  #115  
 
Join Date: Feb 2010
Posts: 51
Been with OZ last 5-6 years.. by dec-jan ill qualify for diamond till 2023. not sure if i should get miles credited to oz. Any other airlines match OZ Diamond?
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Old Oct 18, 19, 4:22 pm
  #116  
 
Join Date: Nov 2013
Location: NYC
Programs: OZ Diamond *A Gold / AF Silver
Posts: 401
Originally Posted by hotpopcorn View Post
Been with OZ last 5-6 years.. by dec-jan ill qualify for diamond till 2023. not sure if i should get miles credited to oz. Any other airlines match OZ Diamond?
Delta is doing a match right now but it requires some spend, I think.
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Old Nov 8, 19, 1:00 am
  #117  
 
Join Date: Apr 2008
Location: Hanoi, Vietnam
Programs: Asiana, Singapore, EVA, Southwest
Posts: 924
From Airliners.net:

https://news.v.daum.net/v/20191108085511208 (Article in Korean)

HDC Hyundai Development Company consortium is reported to have offered 2.5 trillion KRW, about $2.16 billion USD.
Jeju Air consortium has bidded less than 2 trillion KRW.
It's expected that HDC consortium will likely to be winner, but we can wait about a week to see.

In either bids, less than 400 million KRW (345 million USD) will be used to buy out Kumho Industrial's current stocks.
The others will be capital increase through newly issued shares, allocated to the third party (the preferred bidder in this case.)

By the way, the term "third-party allocation" or "third-party allotment" seem to be only used in Japanese and Korean companies. Is it not a standard practice in Western economies?
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Old Nov 8, 19, 8:32 am
  #118  
 
Join Date: Nov 2013
Location: NYC
Programs: OZ Diamond *A Gold / AF Silver
Posts: 401
Originally Posted by Daawgon View Post
From Airliners.net:

https://news.v.daum.net/v/20191108085511208 (Article in Korean)

HDC Hyundai Development Company consortium is reported to have offered 2.5 trillion KRW, about $2.16 billion USD.
Jeju Air consortium has bidded less than 2 trillion KRW.
It's expected that HDC consortium will likely to be winner, but we can wait about a week to see.

In either bids, less than 400 million KRW (345 million USD) will be used to buy out Kumho Industrial's current stocks.
The others will be capital increase through newly issued shares, allocated to the third party (the preferred bidder in this case.)

By the way, the term "third-party allocation" or "third-party allotment" seem to be only used in Japanese and Korean companies. Is it not a standard practice in Western economies?
Hyundai? Very surprised, but why not.
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Old Nov 8, 19, 1:47 pm
  #119  
 
Join Date: Jan 2010
Posts: 417
Happy to see that there is finally some news on this issue.

I will be earning about 20k miles in about a month, and I am debating if I should credit to OZ or another *A airline. I have already earned *G for the current period, which will end in March. I am still a long way off from getting 500k for lifetime status, and I am wondering what the likelihood is that it will be around in 5+ years when I do hit it.
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Old Nov 9, 19, 11:18 pm
  #120  
 
Join Date: Jun 2005
Location: Toronto, Canada
Posts: 737
Mirae/HDC will reportedly be named the preferred bidder, offering more money and superior financial improvement plans. 20% of the funding would come from Mirae and 80% from HDC.

Mirae Asset Consortium Likely To Clinch $2.1 Bn Asiana Airlines Deal | KOREAN INVESTORS
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