(LEAD) Asiana Airlines approves sale of cargo biz to win EU approval for Korean Air's takeover

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SEOUL, Nov. 2 (Yonhap) -- The board of Asiana Airlines Inc., South Korea's second-largest air carrier, on Thursday approved a plan to sell the company's cargo business, as Korean Air Co. seeks to win antitrust approval from European Union regulators for its takeover of the rival, informed industry sources said.

The decision came three days after the board of directors failed to reach a conclusion amid disagreements over the sell-off of the business division.

The European Commission, the EU's executive body, has raised concerns that Korean Air's acquisition of Asiana may restrict competition in the markets for passenger and cargo air transport services between the EU and South Korea.

A rejection could have potentially dampened the prospects of the merger deal, which has been pursued for the past three years.

Korean Air is soon expected to submit formal remedies to the EC. It is expected to include Asiana's approved cargo business sale plan and divesting of landing slots for four European cities.

odissy@yna.co.kr
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