Korean Air-Asiana merger deal likely to receive final EU approval this month

The merger deal between Korean Air and Asiana Airlines, Korea's two full-fledged carriers, is expected to clear a major regulatory hurdle after likely receiving a final nod from the European Union this month, according to industry sources Tuesday. The European Commission (EC), the EU's executive body, is expected to make a final decision on whether to approve the 1.8t-won ($1.28b) merger deal after monitoring operational stability of four European routes that Korean Air transferred to low-cost carrier (LCC) T'way Air. Korean Air has so far won approval from 12 countries and regions, and is waiting for final approval from the EU and the United States. Many industry watchers expect the EC, which conditionally approved the deal in February, to give its final approval within the month. The route transfer was part of remedial measures Korean Air offered to carry out to receive conditional approval from the EC for the merger in February. The EC is currently reviewing whether T'way Air can operate these four routes reliably and establish healthy competition with Korean Air.<br/>