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Korean Air-Asiana merger approved by US DOJ after European Commission's nod

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Korean Air-Asiana merger approved by US DOJ after European Commission's nod
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Simple Flying | Simple Flying

Korean Air and Asiana Airlines are set to finalize their merger after receiving the last required approval from the United States Department of Justice (DOJ). The DOJ's decision comes after the European Commission (EC) had already given its approval, clearing a major obstacle for the merger. According to an exclusive report by Maeil Business Newspaper, sources familiar with the situation confirmed that the DOJ has now also given its consent.

The EC's final approval was granted on November 28, at which point Korean Air submitted this clearance to the DOJ. Korean Air plans to complete the transaction by December 11, pending no objections arise before acquiring Asiana Airlines' shares. A spokesperson for Korean Air stated on December 2 that they expect completion of the acquisition soon.

Korean Air initially announced in November 2020 that it would acquire Asiana Airlines for KRW 1.8 trillion ($1.2 billion). "Korean Air decided to acquire Asiana Airlines after much consideration and deliberation in order to pursue its founding mission to contribute to the nation through transportation," said a representative from Korean Air.

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To address competition concerns raised during regulatory reviews, Korean Air has implemented measures such as supporting T’Way Air in launching new flights on less competitive routes and leasing Boeing 787-9 aircraft to rival airline Air Premia. These actions were intended to mitigate any anti-competitive effects resulting from the merger.

Once completed, this merger will position Korean Air among the top ten airlines globally, reflecting a strategic move amid South Korea’s aviation market dynamics compared with other nations like Germany and France, each having one dominant flag carrier.

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