Korean Air Set to Finalize Asiana Airlines Acquisition

Korean Air is poised to complete its acquisition of rival Asiana Airlines, with final U.S. Department of Justice (DOJ) approval expected during the second week of December 2024. This move will establish one of Asia’s largest airline groups, significantly reshaping South Korea’s aviation landscape.

The acquisition, valued at approximately 1.8 trillion won ($1.3 billion), was initially announced in 2020 to rescue Asiana, which has struggled since the pandemic. By integrating Asiana into its operations, Korean Air aims to create a stronger national carrier capable of competing with regional powerhouses such as Cathay Pacific and Singapore Airlines.

Korean Air plans to officially become the majority shareholder of Asiana Airlines on December 11, 2024, acquiring a 63.9% stake. Once finalized, the group intends to unify its low-cost carrier operations under the Jin Air brand, consolidating Asiana’s subsidiaries Air Busan and Air Seoul into a single budget airline. This merger could make Jin Air the largest low-cost carrier in Korea, surpassing competitors like Jeju Air and T’way Air.

Jin Air, established in 2008, currently operates a fleet of 31 aircraft, including Boeing 737s and B777-200ERs. Air Busan, founded in 2007, operates 22 aircraft and serves 29 destinations, while Air Seoul, launched in 2015, operates six A321s to 12 destinations. Together, these carriers accounted for 8% of Korea’s domestic and international capacity as of November 2024.

The merger will streamline Korean Air’s operations, leaving the airline as the sole full-service carrier, with Jin Air leading its budget operations. This consolidation marks a significant milestone in Korean Air’s efforts to strengthen its market position and improve operational efficiency.

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