13 regulators down, 1 to go: Korean Air and Asiana mega-merger awaits U.S. approval

All eyes are on Washington D.C. as the proposed merger of South Korea’s two largest airlines reaches its final regulatory hurdle. It follows an announcement by the European Commission late last week that the conditions it set for the deal have now been satisfied. If – or more likely when – realized, the coming together of Korean Air and Asiana Airlines will turn two significant carriers into a formidable aviation powerhouse. The developments in Brussels leave the United States as the last of 14 global regulators to allow the deal. In February, European competition authorities granted the proposed merger conditional clearance. In practice, this meant formal approval was dependent on certain pro-competition commitments being honored. The first of these required Korean Air to sell Asiana Airlines’ cargo unit, which it has done. The second focused on four routes between Europe and South Korea where the two airlines had overlapping networks. With Seoul-based rival T’Way Air now operating to Barcelona, Frankfurt, Paris, and Rome, the European competition watchdog has cleared the deal. In a statement, Korean Air said it has submitted the European Commission’s final approval to the U.S. Department of Justice and “plans to complete the transaction by December 2024.” The company’s bullish timeline – with completion by year-end – suggests it is confident that the DOJ is looking favorably upon the deal. However, there could yet be strings attached.<br/>