Korean Air has selected Air Incheon as the preferred bidder for the sale of Asiana Airlines' global cargo freighter business.

The South Korean flag carrier noted that Air Incheon was selected based on several key criteria, including the certainty of completing the transaction, the ability to maintain and enhance the long-term competitiveness of the air cargo business, and the capability to mobilize funds through a competent consortium.

The decision was made at the Board of Directors meeting held on June 17.

Founded in 2012, Air Incheon is Korea's only all-cargo airline, with operations focused on Asia.

Air Incheon is expected to strengthen its competitiveness by utilizing Asiana Airlines' long-haul network to the Americas and Europe and a fleet of larger cargo aircraft.

Korean Air said in the announcement that it plans to sign a framework agreement with Air Incheon in July after agreeing on the contract conditions.

The agreement is subject to review by the European Commission.

"The preferred bidder was selected through a comprehensive evaluation of all factors crucial to the growth of the air cargo industry, a key national industry, while maintaining the existing competitive environment," a Korean representative said.

"We are committed to quickly finalizing the sales process through flexible negotiations and completing the acquisition of Asiana Airlines."