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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] The merger between Korean Air and Asiana Airlines, initiated in 2020, is now in its final stages after four years of efforts.
According to the aviation industry on the 27th, the European Commission (EC) has concluded its review of the merger and is expected to announce its approval soon. A senior industry official commented, “The review process is complete, and it seems only the official approval announcement remains.”
Since beginning their merger process in 2020, Korean Air and Asiana Airlines have secured approvals from major global regulators, starting with Turkey’s competition authority in February 2021. However, the EC delayed its decision earlier this year, requiring conditions such as the divestment of cargo operations and the transfer of European passenger routes.
Korean Air has now fulfilled all conditions set by the EC. Four European routes (Paris, Rome, Frankfurt, and Barcelona) were transferred to T’way Air, and Asiana’s cargo division was sold to Air Incheon. With these requirements met, the EC’s approval is anticipated, and the U.S. Department of Justice (DOJ) is not expected to oppose the merger, bringing the process to a conclusion.
With the regulatory approvals essentially finalized, Korean Air plans to pay the remaining KRW 800 billion of the KRW 1.5 trillion acquisition cost (excluding KRW 300 billion in perpetual bonds) by December 20. This payment will be made through participation in Asiana’s third-party allocation rights issue, increasing Korean Air’s stake in Asiana Airlines to 63.88%.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
