Korean Air wins EU approval for Asiana deal

Korean Air won the approval of the European Union's antitrust agency for the long-delayed bid for Asiana Airlines, leaving only one decision by a U.S. authority before the complete takeover of the cash-strapped airline, the nation’s flag carrier said Tuesday. Korean Air has overcome a significant obstacle in its years-long struggle to finalize the mega-sized deal. The airline is now poised to launch the combined entity pending potential approval from the U.S. Department of Justice. While the U.S. authority has not provided a timeline for its announcement, Korean Air aims to complete the deal by the end of 2024. The EC has expressed concerns over the deal impacting competition and urged Korean Air to divest Asiana’s cargo freighter business and facilitate the entry of a new airline on four overlapping passenger routes between Korea and the European Union. “Korean Air and Asiana Airlines will need to take several steps, such as appointing an advisory firm to oversee the divestment of Asiana Airlines’ cargo freighter business, as well as initiating the bidding process, and selecting a buyer of the cargo business,” Korean Air said in a statement. “The approval by the EC of the selected buyer is required to close the deal. Once Korean Air completes the acquisition of Asiana Airlines, the actual cargo divestment process will take place.” The airline also noted that T’way Air, a Seoul-based low-cost carrier, has been designated as a remedy for the specified European passenger routes. Korean Air has committed to assisting T’way in commencing operations on the four routes from Incheon to Paris, Rome, Barcelona, and Frankfurt in the second half of this year.<br/>