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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Sangjin] The European Commission (EC), which is currently reviewing the merger between Korean Air and Asiana Airlines, is said to be in the final stages of assessing the sale of Asiana’s cargo business. The EC has already determined that the conditions for the transfer of four European passenger routes set as a requirement for the merger have been met.
According to industry sources on the 21st, the EC is in the final review phase following an on-site inspection of Air Incheon in August. The commission is scrutinizing the overall operational capabilities, including finances and staffing, before issuing its final approval.
The sale of the cargo division was one of the conditions set by the EC for the merger between Korean Air and Asiana Airlines. Air Incheon is expected to complete the acquisition of Asiana's cargo division by January next year, following Korean Air’s final approval from the EC and the acquisition of new shares in Asiana by the end of this year.
In February, the EC conditionally approved the merger between the two airlines and mandated the transfer of four European passenger routes—Frankfurt, Paris, Rome, and Barcelona—to a domestic low-cost carrier (LCC). T’way Air, which took over these routes, completed the transfer with a new flight to Frankfurt on the 3rd of this month. The EC has assessed the safety of operations on these routes and reviewed whether a smooth competitive environment can be established between the two airlines.
The aviation industry expects that once the EC gives its final approval, the review process by the U.S. Department of Justice (DOJ) will also conclude.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
