Singapore grants approval for Korean Air-Asiana Airlines merger

Singapore's antitrust regulator recently approved Korean Air's acquisition of its domestic rival, Asiana Airlines, because regulatory authorities there do not think the merger will raise any serious issues, a top industry executive said Monday. While Singapore's approval is not crucial to the entire approval process, the green light is expected to be a plus for the acquisition, which has been postponed for two years, according to the industry sources. "Singapore contacted US-based travel agencies in Korea and asked them whether or not the Korean Air-Asiana Airlines merger would hurt fair competition. The travel agencies contacted by the regulatory authorities in Singapore responded positively, and the views have been endorsed by the Singaporean antitrust authorities," according to the executive. Singapore was one of the five countries ― including Britain, Australia, Malaysia and the Philippines ― that Korean Air voluntarily turned to for consideration. So far, Malaysia and Singapore have approved the plan, and industry sources say the decisions will positively influence the antitrust reviews currently under way in more than half of the nine countries where it is being considered. The nine regions and countries in which Korean Air's and Asiana Airline's major international destinations are located are: Korea, the United States, the European Union, China, Japan, Vietnam, Turkey, Taiwan and Thailand. The merger plan is subject to receiving approval from each of the nine countries' antitrust authorities. Due to possible monopoly risks, however, only four of them ― Taiwan, Thailand, Turkey and Vietnam ― have so far endorsed the deal, which will result in the creation of one of the world's 10 largest airlines.<br/>