By Park Hyong-ki
Asiana Airlines continued to rally on expectations that its sales plan will be formed soon by its creditors led by the state-run Korea Development Bank (KDB), analysts said Tuesday.
The debt-laden carrier closed up 16.07 percent at 8,450 won ($7.44) Tuesday, surpassing its 52-week high of 7,280 won.
"The sale would improve Asiana's finances, and this is expected to boost competition in the airline sector," said Kang Seong-jin, an analyst at KB Securities.
The airliner shares turned bullish last week following the Financial Services Commission's (FSC) commitment to save Asiana, but not its owner, former Kumho Asiana Group Chairman Park Sam-koo.
KDB Chairman Lee Dong-gull told reporters Tuesday that the policy bank and the FSC will decide how much capital the bank will inject into the airliner before April 25.
That is when the company has to repay its 60 billion won debt out of total short-term debt worth 1.2 trillion won. Asiana's total debt amounts to over 3 trillion won, according to KDB.
It will pursue a "package sale" of Asiana and its budget airline subsidiaries ― Air Busan and Air Seoul ― as quickly as possible to regain market trust in the company, the chairman added.
KDB-led creditors and the FSC recently approved Asiana's revised self-rescue proposal as Kumho Chairman Park agreed to sell the company.
Asiana Airlines debuted on the KOSPI in 2008, after transferring its shares from the tech-heavy KOSDAQ.
It was listed on the KOSDAQ in 1999.
However, the company's shares have remained in the shadows of Korean Air, the top carrier that also trades on the main bourse, as investors have mostly shunned Asiana.
Asiana Airlines continued to rally on expectations that its sales plan will be formed soon by its creditors led by the state-run Korea Development Bank (KDB), analysts said Tuesday.
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"The sale would improve Asiana's finances, and this is expected to boost competition in the airline sector," said Kang Seong-jin, an analyst at KB Securities.
The airliner shares turned bullish last week following the Financial Services Commission's (FSC) commitment to save Asiana, but not its owner, former Kumho Asiana Group Chairman Park Sam-koo.
KDB Chairman Lee Dong-gull told reporters Tuesday that the policy bank and the FSC will decide how much capital the bank will inject into the airliner before April 25.
That is when the company has to repay its 60 billion won debt out of total short-term debt worth 1.2 trillion won. Asiana's total debt amounts to over 3 trillion won, according to KDB.
It will pursue a "package sale" of Asiana and its budget airline subsidiaries ― Air Busan and Air Seoul ― as quickly as possible to regain market trust in the company, the chairman added.
KDB-led creditors and the FSC recently approved Asiana's revised self-rescue proposal as Kumho Chairman Park agreed to sell the company.
Asiana Airlines debuted on the KOSPI in 2008, after transferring its shares from the tech-heavy KOSDAQ.
It was listed on the KOSDAQ in 1999.
However, the company's shares have remained in the shadows of Korean Air, the top carrier that also trades on the main bourse, as investors have mostly shunned Asiana.
