{"id":106206,"date":"2025-08-03T14:43:29","date_gmt":"2025-08-03T09:13:29","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=106206"},"modified":"2025-08-03T14:44:01","modified_gmt":"2025-08-03T09:14:01","slug":"korean-air-asiana-fined-over-merger-price-violations","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2025\/08\/03\/korean-air-asiana-fined-over-merger-price-violations\/","title":{"rendered":"Korean Air, Asiana Fined $8.7 Million Over Merger Price Violations"},"content":{"rendered":"\n

SEOUL\u2014<\/strong> Korean Air (KE)<\/a> and Asiana Airlines (OZ)<\/a> have been fined 12.1 billion won (US$8.7 million) by South Korea\u2019s Fair Trade Commission (FTC) for violating key terms of their government-approved merger.<\/p>\n\n\n\n

The penalty, the largest of its kind since 1991, was issued after the FTC found that both airlines exceeded fare increase limits set during the merger’s conditional approval in December 2024. Routes from Incheon (ICN), Gwangju (KWJ), and Jeju (CJU) were among those affected.<\/p>\n\n\n\n

\"Korean
Photo: By Hyeonwoo Noh – http:\/\/www.airliners.net\/photo\/Korean-Air\/Airbus-A380-861\/2515862\/L\/, CC BY-SA 4.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=38818177<\/figcaption><\/figure>\n\n\n\n

Korean Air, Asiana Merger Violations<\/h2>\n\n\n\n

When Korean Air (KE) received approval to acquire Asiana Airlines (OZ), the deal came with strict requirements.<\/p>\n\n\n\n

The most critical: neither airline could raise average ticket prices beyond the inflation-adjusted 2019 benchmark. This was intended to prevent fare hikes stemming from reduced competition.<\/p>\n\n\n\n

However, within the first year, the two carriers surpassed those limits on several routes. The FTC reported that business class fares on Incheon\u2013Barcelona (ICN\u2013BCN) and Incheon\u2013Frankfurt (ICN\u2013FRA) increased between 1.3% and 28.2% over 2019 levels.<\/p>\n\n\n\n

Similar fare hikes were recorded on the Gwangju\u2013Jeju (KWJ\u2013CJU) economy route and both cabins on the Incheon\u2013Rome (ICN\u2013FCO) route.<\/p>\n\n\n\n

The FTC noted that these violations directly contradicted the corrective orders imposed during the merger\u2019s approval, particularly the condition that ticket prices remain within the inflation threshold.<\/p>\n\n\n\n

\"Korean
Photo: By Hyeonwoo Noh – http:\/\/www.airliners.net\/photo\/Asiana-Airlines\/Airbus-A380-841\/2505314\/L\/, CC BY-SA 4.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=44772783<\/figcaption><\/figure>\n\n\n\n

Additional Conditions and Enforcement Measures<\/h2>\n\n\n\n

Beyond the price cap, the merger came with other long-term obligations. Korean Air and Asiana were required to:<\/p>\n\n\n\n