Sources say Korean Air-Asiana deal set to win EU antitrust nod

Korean Air is expected to win EU antitrust approval to buy Asiana Airlines after the companies pledged to sell the latter's cargo unit and divest routes to four European cities, according to two people with direct knowledge of the matter. The deal underscores a wave of consolidation in the airline sector, with Lufthansa seeking a 41% stake in Italy's ITA Airways and British Airways and Iberia owner IAG aiming to buy the remaining 80% of Spanish carrier Air Europa it does not already own. Korean Air, Korea's biggest carrier, in late 2020 said it planned to spend 1.8t won ($1.37b) to become the top shareholder of indebted Asiana. It submitted the remedy offer in November last year, with the proposed cargo business sale a significant departure from the usual airline remedies of airport slots and access to frequent flyer programs. Korean budget airline T'way Air is expected to acquire Asiana's cargo business after EU competition officials made it clear that they would prefer an Asian, preferably a Korean rival, to be the buyer, the people said. Passenger routes to be divested are those to Barcelona, Frankfurt, Paris and Rome, they added. The Commission declined to comment. It has beefed up its approach towards air mergers after previously approved deals led to price hikes despite remedies to address their concessions.<br/>