Korean Air eyes key Asiana merger approvals by year-end

Korean Air chief executive Walter Cho is hopeful of securing the necessary approvals from US and European Union competition regulators for the airline’s merger with Asiana by the end of this year. The SkyTeam carrier first announced plans to acquire Asiana in November 2020, as the coronavirus pandemic turned the country’s aviation sector on its head. It has since been ticking off various international regulatory issues, but still has to secure approval in several territories, notably including the USA and the EU. ”We weren’t expecting it be easy, because Asiana and Korean Air were basically 100% of the international market [out of Korea], especially in long-haul,” Cho told reporters during a media round table in Doha at the IATA AGM. “And with the US and EU, I expected there to be some issues. However, we are on track.” US and EU regulators are among those seeking to ensure there is enough competition on routes once the carriers are merged. While Cho argues that because a majority of its US-originating traffic is transit – meaning it is in competition with other carriers in region on these routes – Korean has been seeking other operators to enter some of the impacted routes. ”We are starting to talk with other carriers that have interest to fly to Korea and we are also starting to meet the request from the [US Department of Justice] and the EU on their requirements, which are basically similar,” says Cho. ”And we expect no later than the end of the year we will get the EU and US approvals, which is going to be the milestone of this acquisition process. And other countries, it’s similar progress right now. So everything should be done no later than the end of the year.”<br/>