Korean Air to merge budget units and overlapping routes after taking over Asiana

Korean Air Lines will streamline redundant routes and businesses and merge budget units without any layoffs after it brings the country’s second full-service carrier Asiana Airlines under its wing, according to its post-merger blueprint submitted to main creditor Korea Development Bank (KDB). The state lender will review and make necessary suggestions for a month before signing the final terms of the agreement. It has launched a special committee comprised of inside and outside experts responsible for keeping watch on the post-merger progress and annually evaluating management performance. Korean Air and KDB assured there would be no layoffs, but redundant staff inevitably may have to be let go. The management, including Hanjin Group Chairman Cho Won-tae, could be sacked upon poor management.<br/>