Korean air completes EU conditions for merger with Asiana Airlines

Policy

A321XLR | Airbus

By Sky Industry News

Dec 2, 2024

Korean Air has met all the conditions set by the European Union competition authority for its merger with Asiana Airlines. The European Commission (EC) confirmed on November 28 that it had concluded its review after verifying Korean Air's compliance with the necessary requirements.

The EC granted conditional approval in February 2024, contingent upon two main conditions: 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.

Korean Air has chosen T'way Air as the remedy carrier for these European routes. They have committed to providing operational support, including aircraft, flight crew, and maintenance services. A remedy carrier in an airline merger is given non-discriminatory access to a merging airline's content through indirect distribution channels. This enables consumers to compare offers from merging airlines with those of competitors, potentially benefiting smaller carriers.

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For now, both brands will continue to operate separately, but eventually, the Asiana brand will be phased out entirely. Korean Air and Asiana each have low-cost subsidiaries; Jin Air belongs to Korean Air while Asiana owns Air Busan and Air Seoul. The plan involves Jin Air absorbing both Air Busan and Air Seoul, making it larger than Korea’s other major low-cost carriers like Jeju Air and T’way Air.

Following the merger, the combined airline will join SkyTeam Alliance as Asiana exits Star Alliance. Korean Air has submitted the EC's final approval to the U.S. Department of Justice and aims to complete the transaction by December 2024.

About Korean Air: With over 55 years of service globally, Korean Air ranks among the world's top 20 airlines. It carried more than 27 million passengers in 2019 before COVID-19 struck. Operating from its hub at Incheon International Airport (ICN), it serves 114 cities across 40 countries on five continents with a fleet of 158 aircraft and employs over 20,000 staff members.

Korean Air is recognized for its safety standards and customer service excellence. It has received numerous awards such as a 7-star airline rating from AirlineRatings.com and accolades like Airline of the Year and Cargo Operator of the Year from Air Transport World. It is also a founding member of SkyTeam Alliance and has expanded significantly through a joint venture with Delta Air Lines.