Korean Air to submit more materials to UK government concerning Asiana Airlines takeover

Korean Air plans to submit additional data to address monopoly concerns over its scheduled takeover of Asiana Airlines raised by British competition authorities, the air carrier said Tuesday. The British Competition and Markets Authority (CMA) announced that it would suspend its review, saying that the acquisition could result in higher prices and lower-quality service for passengers traveling between London and Seoul. "The announcement of the CMA is an interim result of the business combination review and is not a final decision," a Korean Air official said. "We are currently discussing detailed corrective measures with the British authorities." The CMA plans to decide by Nov. 28 whether to accept Korean Air's proposal or initiate an in-depth second-stage review. If the CMA accepts Korean Air's proposal, the deal is approved, and if there are any problems, a second review will be conducted, postponing the decision further. The CMA predicted that the combination of the two airlines would reduce the options for consumers on London-Seoul flights. Due to the absence of UK airlines operating in Korea, Korean Air and Asiana are the only two airlines operating nonstop services between London and Seoul, raising competition issues once the deal is complete, as the only competition they would face would be from carriers offering connecting flights, which the CMA states will present "much weaker options" for customers. "Korean Air and Asiana Airlines are the two main players on the London to Seoul route, and the deal risks U.K. customers and businesses paying over the odds or receiving a lower quality of service. Should Korea Air and Asiana Airlines fail to address our concerns, this deal will progress to a more in-depth investigation," said Colin Raftery, senior mergers director at the CMA.<br/>