“Asiana Airlines” approves plan to merge with Korean Air amid concerns about competition on European routes.
On November 2, 2566, Bloomberg News reported that Asiana Airlines Inc., one of South Korea's major airlines, had agreed to push forward with its merger plan with Korean Air, South Korea's largest airline, after lengthy negotiations amid concerns that the merger could impact competition on European routes.
The plan, signed at a board meeting on Thursday (November 2, 66), includes the sale of Asiana Airlines' cargo business to another South Korean airline, removing a major obstacle to the merger. The other airlines will also be allowed to use Asiana Airlines' routes from Seoul to Paris, Frankfurt, Rome, and Barcelona.
European regulators fear that a Korean Air takeover of Asiana Airlines, a proposal first put forward in 2563, would threaten competition in air cargo services to and from Europe, as well as passenger routes.
In the committee meeting Three Asiana Airlines board members voted in favor of the plan. with one member disagreeing and another person abstained from voting
Korean Air stated that it will submit a new proposal to European authorities and await consideration, with the airline aiming for approval by the end of January 2567. It is also awaiting approval from the United States and Japan, and will hold discussions with US officials before sending the proposal to Japan, with a decision expected in early 2567.
A Korean Air spokesperson wrote in a message sent to Bloomberg News that while Korean Air continues to seek approval from the European Commission, the airline will communicate closely with the remaining regulators to finalize the approval process as quickly as possible. Other countries, such as China and the United Kingdom, have already given their approval to the plan.
“Korean Air offered alternatives to alleviate competition concerns, but the EC rejected them all. The sale of the freight business was the only option presented for approval.”
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