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Photo = Korean Air |
[Alpha Biz= Reporter Kim Jisun] The merger between Korean Air and Asiana Airlines is approaching its final stage, with the Fair Trade Commission (FTC) set to conclude the last procedural adjustments. However, concerns remain within the industry that the merger could significantly weaken competition in the aviation sector.
As Korean Air progresses with the merger, questions have arisen regarding the conditions tied to the transfer of routes to competitors, including aircraft leasing agreements. Given the uncertainty of the situation, experts emphasize the need for continued efforts by the government and Korean Air to maintain a competitive environment even after the merger is finalized.
According to industry sources on the 9th, the FTC plans to hold a plenary meeting this week to finalize measures reflecting reviews by overseas competition authorities. Discussions are expected to cover adjustments such as the reduction ratio of available seats on specific routes.
Amid these developments, concerns have been raised over Korean Air's compliance with the conditions set during the FTC's conditional approval in 2022. These conditions included the surrender of slots (rights to land and take off at specific times) and traffic rights (permissions granted through agreements between countries to operate air routes). Some in the industry argue that these commitments have not been adequately fulfilled.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
