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Korean Air-Asiana merger awaits US DOJ nod after EU green light

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Korean Air-Asiana merger awaits US DOJ nod after EU green light
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Korean Air has announced that it has received approval from the European Commission (EC) for its merger with Asiana Airlines. However, the United States Department of Justice (DOJ) still needs to approve the merger, which Korean Air hopes to achieve by the end of this year.

On November 28, Korean Air stated that it had met all conditions set by the EC for the merger with Asiana Airlines. The Commission confirmed that both airlines had addressed all competition concerns initially identified in February when conditional approval was granted.

"In February 2024, the EC granted conditional approval subject to two key requirements: ensuring stable operations of a remedy carrier on four overlapping European routes (Barcelona, Frankfurt, Paris, and Rome) and the divestiture of Asiana's freighter business."

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T’Way Air from Korea was selected as the remedy taker for these routes and has commenced flights from Seoul Incheon International Airport to Barcelona-El Prat Airport, Frankfurt Airport, Paris Charles De Gaulle Airport, and Rome Leonardo da Vinci–Fiumicino Airport.

The low-cost carrier operates four Airbus A330-300 aircraft. Two were previously part of Thai AirAsia X’s fleet, while one each came from Aeroflot and SmartLynx Malta.

Korean Air is committed to supporting T’Way Air in launching its European operations as mandated by the EC. Meanwhile, Air Incheon will take over Asiana Cargo and its assets.

Asiana Cargo operated 12 Boeing 747-400 freighters and one 767F. The acquisition by Air Incheon includes aircraft slots, traffic rights, flight crew, other employees, customer cargo contracts, among other assets.

The aviation analytics company Cirium reported that T’Way Air began flights from Incheon International to Rome-Fiumicino in August and expanded itineraries to Barcelona and Paris in September. By October, it also started flying to Frankfurt.

In November, T’Way scheduled three weekly flights each to Barcelona, Frankfurt, and Rome along with five weekly itineraries to Paris. Concurrently Korean Air offered four weekly flights to Frankfurt and three to Rome; while Asiana Airlines scheduled five flights each week to Barcelona.

T’Way plans further expansion of its widebody fleet with an agreement signed in September with aircraft lessor Avolon for leasing five A330-900s set for delivery starting in 2026.

Regarding US approval: Korean Air submitted the EC’s final approval documentation to DOJ aiming at concluding their merger process initiated back in 2020 within this year itself. Earlier reports indicated potential legal action by DOJ due concerns about reduced competition on routes between South Korea & USA raised during May last year per Politico reportings

Cirium data reveals ten airlines operate flights between Seoul-Incheon & USA including destinations like Guam Antonio B Won Pat International Airport Saipan International Honolulu Daniel K Inouye International Airports showing combined total seat availability standing around seventy-six thousand seats weekly Of which sixty-two percent shared among merged duo entities adding Delta Airline partnership elevating market share up seventy-five percent collectively controlling overall market scene spanning South Korea-US connections post completion anticipated forthcoming clearance via pending authorization status ahead...

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