After four years of proposing the acquisition, the U.S. has given a green light to the deal. This decision clears the way for the merger between Korean Air and Asiana Airlines.
The flag carrier announced the acquisition in November 2020. Korean Air will invest 1.5 trillion won ($1.07 billion) to acquire a 63.88% stake in Asiana Airlines.
Korean Air could become the world’s 12th largest airline by passenger volume, operating 238 aircraft and employing 27,000.
The airline had to obtain approvals from 14 regulatory authorities, such as the U.S., European Union, the U.K., Australia, and Japan. The flag carrier has made a number of concessions to authorities. In 2023, Virgin Atlantic launched London – Seoul as a result.
Giving Up Four European Routes
Earlier, Korean Air fulfilled the terms of the EU’s agreement as the acquisition costs the airline an arm and a leg. The airline has designated its rival, T’way, as the remedy carrier for the routes to Frankfurt, Paris, Barcelona, and Rome, providing aircraft, flight crew, and maintenance services. Moreover, Air Incheon will purchase Asiana Airlines’ freighter business.
According to Yonhap, Korean Air and Asiana Airlines will be operated separately for the next two years. In addition, Korean Air will appoint a new CEO and key executives for Asiana next month. Meanwhile, the two carriers’ low-cost carrier (Jin Air, Air Busan and Air Seoul) will be merged in the future.
