EU to Announce Review of Korean Air and Asiana Merger Possibly Today

EU Pre-Announcement Deadline Approaching on the 14th

The European Union (EU) competition authorities are expected to announce the results of the corporate merger review between Korean Air and Asiana Airlines as early as the 13th.

According to industry sources, the European Commission (EC) has stated that it will conclude the merger review of the two airlines by February 14, 2024. Therefore, it is anticipated that the results could be announced as early as the afternoon of that day, or at the latest by the morning of the 14th.

Korean Air maintenance engineers are inspecting a Boeing 777-300ER aircraft on the 26th at the Korean Air aircraft maintenance hangar in Jung-gu, Incheon, to achieve the important value of safe aircraft operation. Photo by Jinhyung Kang aymsdream@

Industry insiders expect the EC to approve the merger between Korean Air and Asiana Airlines conditionally. The remedial measures submitted by Korean Air to the EC include the sale of Asiana Airlines' cargo business division and the transfer of traffic rights and slots (airport takeoff and landing frequencies) on routes to four European cities. Behind-the-scenes preparations for this are already underway among major low-cost carriers (LCCs).

If the merger passes the EU's stringent scrutiny on monopolies and corporate mergers, only the United States remains as the final hurdle for the two airlines' merger. Analysts say it is still difficult to predict the U.S. stance. Local U.S. media have reported that the U.S. Department of Justice is considering a lawsuit to block Korean Air's acquisition of Asiana Airlines on the grounds of competition restrictions. United Airlines, a U.S. carrier, has also expressed concerns about weakened competitiveness as routes previously operated jointly with Asiana Airlines have been transferred to other airlines.

Meanwhile, Korean Air plans to complete the merger with Asiana Airlines by obtaining U.S. approval in the first half of this year. The company intends to sell the cargo business within the year and undergo an integration process lasting about two years to become a fully unified company.

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