Integrated Korean Air to Launch on December 17... After Five and a Half Years

Merger Approved by Both Boards on May 13
Merger Agreement to Be Signed on May 14
Mileage Integration Still Under Discussion
"Committed to Global Safety and Service"

The integrated Korean Air is set to be officially launched on December 17.

Korean Air aircraft. Korean Air

On May 13, Korean Air and Asiana Airlines each held regular board meetings and approved the signing of a merger agreement. The two companies will sign the merger agreement on May 14, officially confirming the launch date of the integrated airline.

This merger agreement comes five years and six months after the signing of the share subscription agreement between Korean Air and Asiana Airlines on November 17, 2020.

Previously, due to a sharp decline in global passenger demand caused by the COVID-19 pandemic, Asiana Airlines experienced a weakened financial structure and reduced competitiveness. In response, the government and creditors provided a total of 3.6 trillion won in policy funds to stabilize the aviation industry.

During the merger and acquisition process, Korean Air made continuous efforts to improve Asiana Airlines' financial structure and normalize its management, and repaid the entire amount of public funds received. With the successful completion of this restructuring of the domestic aviation industry, Korean Air plans to strengthen its competitiveness in the global aviation market and establish a foundation for sustainable growth through the launch of the integrated airline.

Employees from flight operations, cabin crew, airport, and maintenance departments of Asiana Airlines and Korean Air are taking a commemorative photo at Incheon International Airport Terminal 2 on the 14th, marking the relocation of Asiana Airlines to Terminal 2. 2026.1.14 Photo by Kang Jin-Hyung

Merger Ratio Set at 1 to 0.2736432

Under this merger agreement, Korean Air will succeed to all assets, liabilities, rights, obligations, and employees of Asiana Airlines.

The merger ratio, calculated based on standard market value under the Capital Markets Act, has been set at Korean Air 1 : Asiana Airlines 0.2736432. As a result, Korean Air's capital is expected to increase by approximately 101.7 billion won.

After the merger agreement, Korean Air will proceed in earnest with all necessary procedures, such as obtaining approval for changes to its Operations Specifications (OpSpecs), required for the stable integration of the airlines' safety and flight operation systems. This is a legal and administrative process to integrate all aircraft and safety operation systems held by Asiana Airlines within Korean Air's operational framework, while maintaining the Air Operator Certificate (AOC) of the surviving Korean Air.

Immediately after signing the merger agreement on May 14, Korean Air will apply to the Ministry of Land, Infrastructure and Transport for merger approval. In June, it plans to apply for approval of changes to its Operations Specifications, reflecting the compliance conditions and restrictions related to aviation safety that will change with the integration. Once the domestic approval process is completed, necessary procedures such as changes to operational standards will be carried out sequentially with overseas aviation authorities as well.

Asiana Airlines plans to hold an extraordinary general meeting of shareholders around August to approve the merger. For Korean Air, this merger qualifies as a small-scale merger under current regulations, so the board of directors will resolve to substitute for a general meeting of shareholders on the same day as Asiana Airlines' shareholder meeting.

A Korean Air official explained, "Given the high level of shareholder interest in this merger, we have faithfully implemented fairness enhancement measures recommended in the Ministry of Justice's recently announced 'Director Conduct Guidelines for Corporate Restructuring,' to protect shareholder rights and comply with the revised Commercial Act's duty of loyalty."

In preparation for the launch of the integrated airline, Korean Air is focusing on enhancing flight safety and customer service to compete with global mega-carriers. In particular, the company has expanded customer choices by redistributing overlapping routes and developing new ones, and has greatly improved service quality through airport lounge renovations, in-flight meal upgrades, and terminal relocations. The integration plan for the two airlines' mileage programs is also under close consultation with relevant authorities such as the Fair Trade Commission, and customers will be notified as soon as details are finalized.

Korean Air has also made significant proactive preparations and investments to ensure flight safety. In anticipation of increased fleet size, routes, and personnel after integration, the company has remodeled its comprehensive operations control center (OCC), cabin crew training center, and aviation medical center at its headquarters in Gangseo-gu, Seoul, and established a more efficient work system. Training programs for flight crew from both airlines have been standardized to minimize operational confusion and ensure safe air travel immediately after the launch of the integrated carrier. Large-scale aircraft maintenance facilities, such as engine test cells, a new engine maintenance plant, and maintenance hangars near Incheon International Airport, are being expanded or newly constructed.

Korean Air expects that the launch of the integrated airline will generate synergy by preserving the competitiveness of the national aviation industry, strengthening Incheon International Airport's hub function, and expanding the global aviation network, thereby fulfilling its core mission of advancing Korea's aviation industry to the next level.

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