Korean Air-Asiana merger faces two biggest hurdles: EU and China

Korean Air is facing hurdles in acquiring the cash-strapped air carrier Asiana Airlines as it awaits clearance from at least four regions the EU, the US, Japan, and China. The EU’s regulatory body, considered one of the biggest obstacles in the airline’s bid as it has been getting tougher over business mergers, recently asked Korean low-cost carriers T’way Air and Air Premia for their opinion on the merger between South Korea’s two biggest air carriers, according to sources in the aviation industry on Thursday. T’way Air and Air Premia were asked about their financial capabilities, whether they had large aircraft, long-distance route operations capabilities and opinions on market changes after the merger. Both of them are known to have responded that they are planning to open new routes to Europe when the merger between Korean Air and Asiana Airlines takes place. T’way Air is expected to review new routes to Paris and Rome, and Air Premia to Germany and London as these locations show high travel demand. T’way Air has also been preparing large aircraft such as A330-300 to start long-distance international flights. Air Premia recently acquired a Boeing 787-9, an aircraft that can fly to western Europe, and transportation rights from Incheon to Germany from the Transport Ministry last month. Korean Air has been undergoing a preconsultation procedure with the EU since January 2021, which is when the company is required to submit related documents before the official merger review process. The national flag carrier is likely to have proposed to the EU’s regulatory body to give up some of its transportation rights in certain regions and other adjustments to prevent monopoly in the aviation industry.<br/>