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Mirae Asset Daewoo Co. has suspended the plan to create an aircraft leasing entity in Singapore, raising doubts about its commitment to the $2 billion buyout of Asiana Airlines together with HDC Hyundai Development amid dysfunctional air industry from the global virus pandemic.

Mirae Asset Daewoo had aimed to establish an aviation leasing company in Singapore by March this year but put off the plan indefinitely, according to investment bank industry sources.

Its move casts further doubt about the Asiana Airlines deal that has been delayed from initial contract signing target in December. The duo won the deal to acquire debt-ridden Asiana Airlines and its two budget sisters for 2.5 trillion won ($2 billion) in November.

Asiana Airlines were discovered to have a debt excess of nearly 1,800 percent over equity capital by the end of December before its business became idle due to the pandemic outbreak.

Given its estimated loss of 300 billion won in the first quarter, losses this year alone could top 1 trillion won.

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 the plan is of no use since more than 90 percent of its fleet is grounded.

The investment house like its partner HDC Hyundai Development maintained it was committed to the deal.

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