SOUTH KOREA – Korean Air’s (KE) long-awaited merger with Asiana Airlines (OZ) has recently received final approval from the European Commission (EC). This marks a major step forward in the airline’s bid to consolidate South Korea’s aviation market.
However, the deal still hinges on approval from the U.S. Department of Justice (DOJ), with the Korean flag carrier targeting completion by December 2024.
The EC announced its decision on November 28, confirming that Korean Air had fulfilled all conditions required for the merger. These conditions, stipulated during the EC’s conditional approval in February 2024, aimed to address concerns over reduced competition on overlapping European routes and the freighter business.
Adjustments for Approval
To meet all the EC conditions, Korean Air designated T’way Air as the “remedy carrier” for four European routes where competition overlap was a concern: Barcelona, Frankfurt, Paris, and Rome. In return, Korean Air has announced that it will provide T’way Air with critical operational support, including aircraft, flight crew, and maintenance services.
Moreover, the EC approved Air Incheon as the buyer for Asiana Airlines’ freighter business to ensure that competition in the air cargo sector remains intact.
With the EC’s approval in hand, Korean Air has submitted the necessary documentation to the U.S. DOJ for review. U.S. authorities are expected to scrutinize the deal, particularly regarding its implications on trans-Pacific routes and potential market dominance.
Post-Merger Plans
Following the merger, the two airlines will operate independently for two years as Korean Air focuses on stabilizing Asiana’s financial health and relocating employees. Once fully integrated, the combined carrier is set to become the world’s seventh-largest airline by passenger volume.
If finalized, the merger will create a dominant carrier in South Korea’s aviation industry. With a fleet of around 250 aircraft and expanded connectivity to key global destinations, Korean Air aims to streamline operations, enhance efficiency, and bolster its competitive edge against regional and international rivals.
In addition to merging the mainline operations, Korean Air plans to consolidate the low-cost carrier (LCC) subsidiaries of both airlines. The two carriers operate Jin Air, Air Busan, and Air Seoul under separate banners. Once the LCC integration is complete, the new entity will emerge as South Korea’s largest LCC by revenue, further solidifying its dominance in the regional aviation market.
As Korean Air and Asiana’s merger progresses, all eyes remain on the U.S. DOJ as the final arbiter of this transformative deal.
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