Korean Air outlines big task of Asiana integration

Korean Air president Woo Keehong has outlined the gargantuan task of integrating Asiana Airlines, in addition to getting regulatory approvals for the deal. Korean has established 20 working groups comprising “100 experts from different fields at the company”, and is working with law firms and accountants on the deal, he says. Significant effort has gone into interviews with Asiana staff and the review of documents. “The merger allows us to establish an effective global passenger network around [Seoul] Incheon International Airport,” says Woo. “It will support Incheon Airport’s growth and development as the hub airport of Northeast Asia. Cargo will benefit in the same way. If the two companies’ aircraft and networks are effectively integrated, the connection network through Incheon International Airport will be strengthened, ensuring Incheon will become the logistics hub in Asia.” On 30 March, a day before Woo’s remarks, the airline stated that it is aiming for 2024 to finalise the Asiana acquisition. The deal was first announced in November 2020. On 17 March, Korean submitted its integration plans for the acquisition to Asiana’s biggest creditor, Korea Development Bank. In addition to optimising the two carriers’ networks, Woo estimates that the integration will allow for synergies amounting to W300-400b ($265-354m) annually. Given the cost of integration, however, it will take two years to break even.<br/>