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| 대한항공과 아시아나 (사진=연합뉴스) |
[Alpha Biz=(Chicago) Reporter Paul Lee] The merger between Korean Air and Asiana Airlines is on the rocks again, and the merger and acquisition (M&A) deal is being prolonged.
On the 17th (local time), European Union (EU) competitors expressed negative opinions that there is a possibility of competition restrictions on some routes in Europe when the two companies combine.
The EU authorities said in a report released on the same day, "If the two companies are merged, we are concerned about a rise in prices and a drop in service quality in the passenger and cargo transportation markets on four routes between South Korea, France, Germany, Spain and Italy."
This report is a kind of interim review, and Korean Air is required to submit a response. Separately, a corrective measure should be presented to the EU authorities by June, which includes measures to address concerns over competition restrictions.
The EU will decide and notify whether to conditionally approve the combination of the two companies by Aug. 3, considering Korean Air's newly proposed corrective measures.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
