Korean Air takeover of Asiana in limbo as global trustbusters balk

Korean Air Lines' acquisition of smaller rival Asiana Airlines is progressing slower than planned in the two years since the deal was announced due to regulatory red lights in Europe, the US, Japan and China. At the time of the announcement, Korean Air said the acquisition would be completed by the end of 2021, but it is now all but certain that the process of clearing antitrust screenings will go into and possibly beyond 2023. In November, Britain's Competition and Markets Authority (CMA) urged the airlines to revise their plan, saying "the merger would risk higher prices and a reduced quality of service for passengers." The CMA noted that Korean Air and Asiana are the only airlines that operate along the London-Seoul (Incheon) route and concluded that their merger would eliminate competition. Korean Air has proposed operating fewer flights and encouraging British carriers to launch operations on the route to maintain post-merger competition. The CMA is expected to discuss the proposal with British companies before making a final decision. Preparing for antitrust screenings, negotiating with relevant authorities and making adjustments requires a massive amount of work. Korean Air's dealings with the European Union, the United States, Japan and China -- all markets both carriers cover with regular routes -- are likely to be tough as well.<br/>