Korean Air to pare down debt through asset sale

This story is sourced from Pro
See more Pro news »

Korean Air is seeking to pare down its debt through the sale of its stake in an oil refiner, 13 aircraft and other assets.

The carrier is expected to raise a total of won (W) 3.49 trillion ($3.28 billion) from selling its stake in oil refiner S-Oil, 13 Boeing aircraft as well as other assets such as real estate and investments, says its spokeswoman.

Korean Air hopes to sell all 13 aircraft, which comprise Boeing 747-400s and 777-200s, by 2015.

Based on an investor presentation for its fiscal third quarter to 30 September, the carrier has total assets of W22.7 trillion and total liabilities of around W20 trillion. This leaves the carrier with W2.68 trillion worth of total equity.

Flightglobal’s Ascend Online Fleets database shows that Korean Air has 14 Boeing 747-400s, 20 747-400 Freighters, and 18 777-200ER aircraft in its fleet. Most of them are owned by the carrier.