FlightGlobal
• Alfred Chua
Korean Air’s board and Asiana Airlines’ shareholders have formally approved the merger agreement, marking a major corporate milestone in the carriers’ long-running integration. The approvals clear the way for the airlines to combine by December 2026, subject to completion of the remaining process.
Aircraft Demand: Airline Distress & Consolidation
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Cabo Verde Airlines has received $4.7 million in funding to maintain operations, underscoring the carrier’s immediate financial pressure. The support provides near-term continuity for the airline while highlighting the challenges facing smaller African operators.
easyJet’s £5.7bn takeover battle, ultimately won by Apollo, has focused attention on airline assets trading below book value. Jet2’s roughly £3bn valuation, IAG’s Avios loyalty business and Lufthansa’s repairs arm may also be undervalued, while stake sales could unlock value.
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Korean Air’s board and Asiana Airlines’ shareholders have formally approved the merger agreement, marking a major corporate milestone in the carriers’ long-running integration. The approvals clear the way for the airlines to combine by December 2026, subject to completion of the remaining process.
Turkish Airlines expects European Commission approval by the end of 2026 for its planned investment in Air Europa, while Korean Air and Asiana shareholders have approved a merger targeted to launch on Dec. 17, 2026. Separately, higher fuel costs sharply reduced second-quarter profits at Turkish and Thai Airways.
High activity
Latvia’s state-owned airBaltic is pivoting from expansion to financial stabilization, reducing its Airbus A220-300 fleet from 54 aircraft to 36. The restructuring includes cost reductions and a proposed debt-for-equity swap as the carrier seeks to restore profitability and strengthen its balance sheet.
Alternative investment firm 777 Partners has filed for bankruptcy weeks after creditors moved to liquidate the company. The filing follows more than a year of asset sales, marking a significant escalation in the firm’s financial deterioration and the disposition of its remaining holdings.
The parent company of Kenya-based airline Fly540 has been placed in receivership, putting the operator’s ownership and financial position under formal administration. The development adds to the list of airline distress events requiring close attention from creditors, lessors, employees and other industry stakeholders.
Argentina has approved a plan allowing Flybondi to continue operating, providing the airline with a path to maintain its services. The decision underscores the importance of regulatory approval to the carrier’s near-term operational continuity.
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