Asiana Airlines said on the 15th that it will exercise the conversion rights on the 100 billion won perpetual convertible bonds it acquired in May last year to improve AIR BUSAN's financial structure.
The company said the move is intended to keep AIR BUSAN financially sound and complete a stable integration, taking into account the investment aim of an expected rise in AIR BUSAN's value and the recent emergency management situation.
Asiana Airlines judged that while AIR BUSAN has achieved a turnaround since 2023 and is posting operating results and margins superior to competitors, its corporate value remains undervalued.
It also expects AIR BUSAN's corporate value to increase after the integration of low-cost carriers (LCCs) under Korean Air Lines in the first quarter of 2027, through revenue and expense synergies such as optimized purchasing, more efficient resource use, and higher utilization.
Asiana Airlines expects the conversion to help improve AIR BUSAN's fundamentals by easing its annual interest expense burden (about 6 billion won) and removing the future burden from interest rate step-ups.
Asiana Airlines said, "We plan to continue efforts to maintain AIR BUSAN's financial soundness, work to enhance corporate value, and strengthen future competitiveness through integration."