Asiana Airlines to sell non-core assets worth about 400 bln won

Asiana Airlines Inc., South Korea's second-largest flag carrier, said Friday that it decided to sell non-core assets worth about 400 billion won (US$351.1 million) as part of its efforts to strengthen its financial health.

 Asiana held a board meeting earlier in the day and decided to sell off its 100 percent stake in Kumho Terminal and 50 percent stake in a hotel and office operator based in Vietnam for about 270 billion won and 123 billion won, respectively, the company said.

The move is in line with the company's ongoing business normalization drive prompted by mounting losses. Last year, Asiana reported a net loss of 81.5 billion won, a turnaround from the previous year's profit of 63.3 billion won.

Asiana earlier unveiled a set of restructuring measures including selling assets, closing unprofitable routes and consolidating offices and branches. It also received applications for voluntary retirement. 

Asiana said that the asset sale will help it secure money to better brace for any possible challenge in the capital market, while at the same time lowering costs and strengthening its financial health by significantly reducing its debt ratio. (Yonhap)