Asiana to purchase 6 new aircrafts next year

[THE INVESTOR] Asiana Airlines, the nation’s second-largest flag carrier, plans to purchase six new aircrafts next year spending 582.2 billion won (US$520 million).

According to the company’s recent report to the Financial Supervisory Service, the company will operate a total of 81 air planes by the end of next year.

This year, the company plans to adopt 11 aircrafts, including two A380 jumbo jets, for 648.1 billion won.

Asiana was using loans worth 4.27 trillion won as of the first half of this year, spending an annual 150 billion won to 180 billion won as interest.

Its interest coverage ratio was 0.86. The debt ratio below 1 means a company is not properly paying loan interest with its earnings.

The company plans to issue new shares worth 166.2 billion won on Nov. 7 in order to secure cash for the new aircraft purchase and improve its overall financial structure.

By Lee Ji-yoon (jylee@heraldcorp.com)