European Union Approves Korean Air’s Takeover of Asiana Airlines

The European Union has officially approved Korean Air’s long-awaited takeover of Asiana Airlines, marking a significant step toward finalizing the merger between the two South Korean carriers. On November 28, 2024, the European Commission (EC) announced that after thorough review, Korean Air met all necessary conditions, clearing the way for the merger to proceed.

The approval from the European Commission brings Korean Air’s merger one step closer to completion, as the airline has already received permission from 13 out of 14 relevant countries. The only remaining approval is from the U.S., where a review is still pending.

Conditions for Approval and Remedy Carrier Plan
In February 2024, the EC granted conditional approval of the merger, subject to key commitments by Korean Air. The two main conditions were ensuring the stable operation of a remedy carrier on four overlapping European routes (Barcelona, Frankfurt, Paris, and Rome) and the divestiture of Asiana’s freighter business. These measures aim to preserve competition and minimize the merger’s potential negative impact on the European market.

To fulfill these requirements, Korean Air has designated T’way Air, a South Korean low-cost carrier, as the remedy carrier for the affected European routes. The airline has committed to providing operational support to T’way Air, including the provision of aircraft, flight crews, and maintenance services. Additionally, the EC approved Air Incheon as the buyer for Asiana Airlines’ freighter business, ensuring that competition in the cargo sector remains intact.

Next Steps and Timeline for Completion
With European Commission approval now secured, Korean Air has submitted the final approval documents to the U.S. Department of Justice. The airline is optimistic about completing the merger by December 2024, pending approval from U.S. regulators.

Once the merger is fully finalized, Korean Air plans to operate Asiana Airlines as a subsidiary for the next two years. During this transition period, the two carriers will begin integrating their operations, including exchanging employees between the two companies. After this period, Korean Air intends to fully absorb Asiana, consolidating operations under its brand.

The merger of these two major South Korean airlines is expected to have significant implications for both the domestic and international aviation markets. Korean Air’s expansion will enhance its global presence, and the consolidation will streamline operations, making the combined carrier one of the largest in the world.

As the final regulatory approvals are sought, all eyes are on the U.S. Department of Justice for its decision on whether to approve the merger, a key step in completing one of the most significant airline consolidations in recent years.

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