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Panorama view of Asiana Airlines headquarters. (Photo = Asiana Airlines) |
[Alpha Biz= Reporter Kim Jisun] Korean Air will finalize its acquisition of Asiana Airlines on December 12, marking the end of a 4-year and 1-month-long process. After announcing the merger with Asiana Airlines in November 2020, Korean Air completed the acquisition of a 63.9% stake in Asiana Airlines by contributing an additional 800 billion KRW on December 11, bringing the total investment to 1.5 trillion KRW.
As of December 12, when the agreement officially takes effect, Asiana Airlines will become a subsidiary of Korean Air. Following this, Korean Air plans to hold an extraordinary shareholders' meeting for Asiana Airlines on January 16, during which it will appoint a new CEO and key executives. According to the aviation industry, Song Bo-young, head of Korean Air's passenger business division, is a strong candidate for Asiana Airlines' new CEO.
This integration will create a global aviation giant, ranked 11th in the world. However, the process was far from smooth. In 2019, Kumho Group put Asiana Airlines up for sale due to liquidity issues, and Korean Air decided to acquire it in November 2020. The acquisition required approval from competition authorities in 14 countries, including the European Union, due to monopoly concerns associated with the merger of major airlines. After receiving approval from the EU on November 28 and the U.S. raising no objections by the December 11 deadline for stock payment, the merger was effectively finalized.
To address antitrust concerns raised by various countries during the process, several measures were taken. Asiana Airlines transferred the slots it held at London Heathrow Airport (landing and takeoff rights during specific time periods) to Virgin Atlantic, allowing the British airline to use them up to seven times per week. Additionally, slots on four European routes, including those to Paris and Frankfurt, were transferred to T'way Air. The cargo business of Asiana Airlines is also in the process of being sold to Air Incheon for 470 billion KRW.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
