Korean Air-Asiana merger may gain traction, yet challenges linger
Korean Air's acquisition of Asiana Airlines got a step closer to getting antitrust approval from the European Commission, as the nation’s largest air carrier submitted a revised merger plan that includes a selloff of Asiana’s cargo operation and giving up more routes to European cities. Industry watchers, however, say uncertainty remains about the high-profile 1.8t won ($1.3b) deal that also awaits approval from Japan and the US. “The chances are now higher for Korean Air to win the commission's approval as the company has fulfilled the remedies that the commission has asked for,” said an industry source familiar with the matter. Earlier in May, the commission delayed its decision on the merger plan, citing antitrust concerns that the potential tie-up between the nation's top two air carriers could restrict competition in the markets for passenger and cargo air transport services. “Korean Air would have not pushed ahead with the sale of Asiana’s cargo business if not for the commission’s request,” the source said. “It would be difficult for the commission to turn down Korean Air’s new remedies, which included what the commission requested.” Immediately after Asiana's board of directors voted in favor of the selloff of the cargo business on Thursday, Korean Air submitted its new merger plan to the commission later in the day. The revision also included its plan to divest some of its flights to four European cities -- Frankfurt, Paris, Rome and Barcelona. Korean Air expects the commission's decision to be made by the end of January 2024. But Yoon Moon-gil, a business professor at Korea Aerospace University, stressed that the amendments do not guarantee the commission's approval. “(We) cannot say definitively if the commission will approve Korean Air’s acquisition of Asiana Airlines at the moment,” Yoon said. "The commission may even ask Korean Air to clarify which Korean air carrier is actually capable of taking over Asiana’s cargo business. The commission could ask for a letter of intent to make sure of the planned selloff."<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-11-06/star/korean-air-asiana-merger-may-gain-traction-yet-challenges-linger
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Korean Air-Asiana merger may gain traction, yet challenges linger
Korean Air's acquisition of Asiana Airlines got a step closer to getting antitrust approval from the European Commission, as the nation’s largest air carrier submitted a revised merger plan that includes a selloff of Asiana’s cargo operation and giving up more routes to European cities. Industry watchers, however, say uncertainty remains about the high-profile 1.8t won ($1.3b) deal that also awaits approval from Japan and the US. “The chances are now higher for Korean Air to win the commission's approval as the company has fulfilled the remedies that the commission has asked for,” said an industry source familiar with the matter. Earlier in May, the commission delayed its decision on the merger plan, citing antitrust concerns that the potential tie-up between the nation's top two air carriers could restrict competition in the markets for passenger and cargo air transport services. “Korean Air would have not pushed ahead with the sale of Asiana’s cargo business if not for the commission’s request,” the source said. “It would be difficult for the commission to turn down Korean Air’s new remedies, which included what the commission requested.” Immediately after Asiana's board of directors voted in favor of the selloff of the cargo business on Thursday, Korean Air submitted its new merger plan to the commission later in the day. The revision also included its plan to divest some of its flights to four European cities -- Frankfurt, Paris, Rome and Barcelona. Korean Air expects the commission's decision to be made by the end of January 2024. But Yoon Moon-gil, a business professor at Korea Aerospace University, stressed that the amendments do not guarantee the commission's approval. “(We) cannot say definitively if the commission will approve Korean Air’s acquisition of Asiana Airlines at the moment,” Yoon said. "The commission may even ask Korean Air to clarify which Korean air carrier is actually capable of taking over Asiana’s cargo business. The commission could ask for a letter of intent to make sure of the planned selloff."<br/>
