Korean Air Resubmits Merger Plan to European Commission

Korean Air has submitted a revised merger plan, termed a “corrective action plan,” to the European Commission (EC) as part of its efforts to gain approval for its proposed merger with Asiana Airlines. The submission, received by the EC on November 3, 2023, follows the recent agreement by Asiana to divest its cargo arm.

While the specific details of the amended plan were not disclosed, it is known to include concessions such as surrendering slots at four European airports, facilitating other airlines’ entry into those airports from South Korea, and selling Asiana’s cargo business. The EC raised concerns about the potential dominance of the merged entity on flights between South Korea and the European Union, prompting the need for corrective actions to address competitive issues.

The EC had issued a statement of objections to the merger in May 2023, prompting Korean Air and Asiana to work towards resolving the identified issues. The recent submission aims to address these concerns and secure approval for the USD1.4 billion merger. The EC’s decision is expected in the first quarter of 2024, and the outcome will likely influence clearance processes with Japanese and US competition authorities. Stay tuned for further developments on this significant aviation merger.