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 will officially launch on December 17.

Korean Air aircraft. Korean Air

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

This merger agreement comes approximately five years and six months after Korean Air and Asiana Airlines entered into a share subscription agreement on November 17, 2020.

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

Throughout the acquisition and merger process, Korean Air continuously worked to improve Asiana Airlines’ financial structure and normalize its management, fully repaying all public funds received. By successfully completing the restructuring of the domestic aviation industry, Korean Air plans to strengthen its competitiveness in the global aviation market and lay the foundation for sustainable growth based on 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

The Merger Ratio Is 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 has been set at Korean Air 1 : Asiana Airlines 0.2736432, calculated based on the standard market price in accordance with the Capital Markets Act. As a result, Korean Air’s capital stock is expected to increase by approximately 101.7 billion won.

Following the signing of the merger agreement, Korean Air will proceed in earnest with all necessary procedures, including changing the Operations Specifications (OpSpecs) required for the stable integration of the airlines’ safety and operational systems. This involves maintaining Korean Air’s existing Air Operator Certificate (AOC) as the surviving entity after the merger, while integrating Asiana Airlines’ aircraft and overall safety operations into Korean Air’s operating system through legal and administrative processes.

Immediately after signing the merger agreement on the 14th, Korean Air will apply to the Ministry of Land, Infrastructure and Transport for approval of the merger. In June, Korean Air plans to apply for approval to change operations specifications, which will include amended compliance conditions and restrictions regarding aviation safety as a result of the integration. Upon completion of the domestic approval process, the company will sequentially proceed with necessary procedures—such as changing operations specifications—with overseas aviation authorities as well.

Asiana Airlines plans to hold an extraordinary general meeting of shareholders around August to approve the merger. In the case of Korean Air, since this merger qualifies as a small-scale merger, the board of directors will substitute for a general meeting of shareholders on the same day as Asiana Airlines’ meeting.

A Korean Air official explained, "Given the high level of shareholder interest in this merger, we have faithfully implemented measures to enhance fairness as recommended in the Ministry of Justice’s recently announced 'Director Conduct Guidelines for Corporate Restructuring,' in order 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 has been focusing on improving operational safety and customer service, which are essential to competing with global mega-carriers. In particular, the airline has enhanced service quality through route restructuring to expand customer choices, developing new routes, renewing airport lounges, revamping in-flight meals, and relocating airport terminals. The companies are also closely coordinating with the Fair Trade Commission and other authorities regarding the integration of their mileage programs, and will inform customers as soon as details are finalized.

Significant proactive preparations and investments have also been made to ensure safe operations. To accommodate the expanded fleet, routes, and workforce after integration, Korean Air has remodeled its integrated control center (OCC), cabin crew training center, and aviation medical center at its headquarters in Gangseo-gu, Seoul, and has established a more efficient work system. The two companies have standardized their flight crew training programs to minimize operational disruptions and ensure safety immediately after the launch of the integrated airline. Large-scale aircraft maintenance facilities, such as engine test cells (ETC), a new engine maintenance plant, and maintenance hangars near Incheon International Airport, are also being expanded or newly constructed.

Korean Air expects that the launch of the integrated airline will create synergies including: preserving the national aviation industry’s competitiveness, strengthening Incheon International Airport’s role as a hub, and expanding the global aviation network. The company anticipates achieving its core objective of advancing Korea’s aviation industry to the next level.

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