The merger process between Korean Air (KE) and Asiana Airlines (OZ) has reached a significant milestone with final approval from the European Commission (EC). However, to complete the merger, it still requires review and approval from the U.S. Department of Justice (DOJ). Korean Air aims to finalize the merger by December 2024.
European Commission Approval and Conditions
On November 28, 2024, the EC announced that Korean Air had met the necessary conditions to address competition concerns. These conditions were outlined in a conditional approval in February 2024, primarily focused on alleviating competition issues on overlapping routes, including Barcelona, Frankfurt, Paris, and Rome.
T’way Air was designated as a “solution carrier” on these routes, with Korean Air providing T’way with aircraft, crew, and maintenance support. Asiana’s cargo division will be transferred to Air Incheon to ensure competition is maintained.
U.S. Review and Priorities
The U.S. Department of Justice is particularly concerned with the market dominance on trans-Pacific routes. The DOJ’s review will assess how the merger might impact competition in the U.S.-Korea air traffic and the potential for monopolistic risks.
Post-Merger Strategies
Once the merger is completed, Korean Air will become the seventh-largest airline in the world by passenger numbers. The company’s plans include:
- Ensuring Asiana’s financial stability and the repositioning of employees.
- Expanding its fleet to approximately 250 aircraft and strengthening global connectivity.
- Integrating Korean Air and Asiana’s low-cost carriers, Jin Air, Air Busan, and Air Seoul, to create South Korea’s largest low-cost airline group.
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