Korean Air's Asiana takeover requires regulatory approval from 4 countries

Korean Air Lines' planned acquisition of the debt-laden Asiana Airlines requires approval from antitrust authorities in at least four other countries, industry sources said Sunday. According to the aviation industry sources and the Fair Trade Commission (FTC), the planned merger requires review from authorities in the US, EU, China and Japan. A failure would jeopardize the deal valued at 1.8t won (US$1.6b) that would create the world's 10th-biggest airline by fleet. In the US, combined revenue of two companies exceeding $198m for the latest financial year requires a conditional review for merger clearance from the Department of Justice and the Federal Trade Commission. Korean Air's revenue in the passenger business for this year's first, second and third quarters reached 1.7t won, with more than 20% coming from the US market, they said. Asiana Airlines does not release revenue data by region, yet its total revenue came to 2.8t won during the cited period, they added. In the European market, combined revenue of two parties exceeding E50b for the latest financial year also requires a merger review from antitrust authorities. The combined revenue of Korean Air and Asiana Airlines for this year in the global market surpassed the 8t-won mark, according to the sources. Mergers and alliances in civil aviation in the European market are considered to be more tricky, the sources said. In China, combined revenue of two companies in the global market exceeding 10b yuan also requires merger clearance from the authorities, according to the sources. In Japan, Korean Air's revenue for the latest financial year in the country exceeds 20b yen, meaning the deal requires a merger review, they said. Also, the sources said further review may be needed in other Southeast Asian countries.<br/>