Korean Air "Receives Corporate Merger Approval in Singapore"

Korean Air-Asiana Merger, Singapore Approval Decision Ahead of Fair Trade Commission Announcement on the 9th

Photo by Korean Air

[Asia Economy Reporter Yoo Hyun-seok] Korean Air has received an unconditional corporate merger approval from the Singapore competition authority, a voluntary notification country, for its acquisition of Asiana Airlines.

According to Korean Air on the 9th, the Competition and Consumer Commission of Singapore (CCCS) stated in its approval decision document that "the acquisition and merger of Asiana Airlines by Korean Air is not a transaction prohibited under Singapore competition law."

Since July last year, the CCCS has gathered opinions on the corporate merger notification between Korean Air and Asiana Airlines from over 150 stakeholders, including aviation industry regulators, competitors, and consumers.

The CCCS explained that the possibility of price increases is low due to competitive pressure from rival airlines such as Singapore Airlines in the passenger sector. In the cargo sector, it also judged that there is significant competitive pressure not only from Singapore Airlines but also from cargo airlines operating transit routes and potential competitors. Furthermore, considering the oversupply situation, the CCCS determined that concerns about competition restrictions are low, leading to an unconditional approval decision for the corporate merger.

Korean Air filed corporate merger notifications with nine mandatory notification country competition authorities on January 14 last year. So far, it has received corporate merger approvals from the competition authorities of Turkey, Taiwan, and Vietnam among the mandatory notification countries. Thailand has also notified that it is not subject to prior review for the corporate merger. Additionally, among voluntary notification countries, Korean Air has received approval decisions from Malaysia and Singapore. It has also received an opinion from the Philippine competition authority that it is not subject to notification, thus concluding the procedure.

Korean Air plans to actively cooperate with the remaining mandatory notification countries, including the United States, the European Union (EU), China, and Japan, as well as the competition authorities of the United Kingdom and Australia, which are voluntary notification countries that have not yet approved. Through this, Korean Air aims to complete the procedures promptly and finalize the acquisition of Asiana Airlines.

This content was produced with the assistance of AI translation services.