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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] The European Commission (EC), the European Union's antitrust authority, has granted final approval for the merger of Korean Air and Asiana Airlines. On November 28, the EC announced that all preconditions for the merger had been satisfied, concluding its review process. This approval comes nearly four years after the merger was first reported to antitrust regulators in 14 countries in January 2021.
Korean Air began its journey to secure approvals with clearance from Turkish competition authorities in February 2021. This year, it achieved key milestones by obtaining approvals from Japan and, now, the EU, considered among the most challenging hurdles.
Observers anticipate that the U.S. Department of Justice (DOJ), which has closely monitored the EU's review, will soon conclude its own examination and grant de facto approval. To address the DOJ's concerns about potential monopolistic practices, Korean Air has supported Air Premia, a South Korean low-cost carrier (LCC), to serve as a replacement airline for Asiana on five U.S. routes, including New York, Los Angeles, Seattle, San Francisco, and Honolulu.
The EC had granted conditional approval for the merger in February 2024, imposing specific requirements. These included ensuring stable operations by a new entrant airline (Remedy Taker) on four overlapping European routes—Paris, Frankfurt, Barcelona, and Rome—and finalizing the approval process for a buyer of Asiana Airlines’ cargo business.
To fulfill these conditions, Korean Air selected T’way Air as the new entrant for passenger services on the four European routes. The airline provided comprehensive support, including aircraft, flight crews, and maintenance, to ensure sustainable operations.
Air Incheon was chosen as the buyer for Asiana’s cargo business. Efforts by the Korea Development Bank and government agencies also played a crucial role in securing the EU’s approval.
This landmark decision marks a significant step forward for Korean Air and Asiana Airlines as they move closer to completing the merger and becoming a more competitive global aviation entity.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
