Nov. 16 (UPI) — Hanjin Group, the mother or father firm of Korean Air Traces, introduced Monday it is going to purchase Asiana Airways for $1.6 billion and mix to type one of many world’s 10 largest carriers.

Hanjin stated the merger is the results of pressure on the airline trade introduced on by the COVID-19 pandemic. The transfer is predicted to streamline companies and consolidate slots at Seoul’s Incheon Worldwide Airport.

Hanjin hopes the mix of South Korea’s two largest airways will result in progress within the home aviation trade.

Asiana, based in 1988, flew to greater than 60 cities in 21 international locations previous to the pandemic. Korean Air serves 121 cities in 43 nations.

“Korean Air determined to accumulate Asiana Airways after a lot consideration and deliberation with a view to pursue its founding mission to contribute to the nation by way of transportation,” Hanjin stated in a press release.

“Following its mission, the service will guarantee job safety for workers at each airways in addition to related industries and help the event of Korea’s aviation trade.”

The addition will make Korean Air one of many world’s 10 largest carriers by fleet dimension, Hanjin stated.

“Korean Air’s acquisition and the enlargement of its routes, fleet and capability will give the airline the competitiveness to compete with international mega airways,” the corporate added.

Asiana was concerned in a crash at San Francisco Worldwide Airport in 2013 that killed three passengers. The pilot of the Boeing 777 had landed wanting the runway, investigators concluded.