South Korean investment bank Mirae Asset Daewoo has shelved plans to establish an aircraft leasing company in Singapore, the Maeil Business Newspaper reported.
Mirae together with HDC Hyundai Development Company acquired Asiana Airlines in November 2019 and it was expected they would enter the aircraft leasing market, but the fallout from the Covid-19 has cast doubts on the future prospects of the US$2bn acquisition, the news agency reported.
Prior to the pandemic-induced grounding of aircraft, Asiana Airlines was discovered to have high debt levels with large estimated losses expected for the first quarter of 2020, the news agency reported.
Mirae Asset Daewoo originally decided to set up the aircraft leasing company to help reduce Asiana Airlines’ debts by gradually replacing its 82 planes leased from foreign companies, but that plan will have little effect with more than 90% of its fleet grounded, it was reported.
Mirae Asset Daewoo and its partner HDC Hyundai Development told the news agency it remained committed to the deal.