Korean Air has gained final approval from the European Commission (EC) for its merger with Asiana Airlines. This marks a significant step after the EC’s conditional approval in February 2024. While European regulators have cleared the deal, the US Department of Justice (DOJ) still must approve it. Korean Air aims to complete the merger by year’s end.
To gain approval, Korean Air met the EC’s conditions and addressed all competition concerns in Europe. One key demand was ensuring competition on four overlapping routes between South Korea and Europe. As a result, T’Way Air now operates these routes: Barcelona, Frankfurt, Paris, and Rome. The low-cost carrier has already launched services from Seoul Incheon to these destinations.
Moreover, Korean Air has agreed to support T’Way Air in expanding its fleet and operations. This includes providing aircraft, crew, and maintenance services. In addition, the merger will transfer Asiana Cargo’s assets to Air Incheon, which will take over the freighter business. Air Incheon will also acquire key cargo operations and employee contracts.
The EC’s approval ensures that T’Way Air will effectively compete on these key European routes. Korean Air will continue monitoring these operations as it works to finalize the merger by year’s end.
However, the DOJ remains the last major obstacle to the merger. Previously, reports suggested that the DOJ might challenge the deal, fearing it could harm competition, especially on flights between South Korea and the US. If the merger is approved, it will solidify Korean Air’s dominance in the market, controlling over 75% of the seats on flights from South Korea to the US.
This merger represents a pivotal moment for Korean Air. It strengthens its position in global aviation. Furthermore, the airline continues working to clear all regulatory hurdles in Europe and the US, aiming to complete the deal by the end of 2024.
Related stories:
Catch up on the top stories and travel deals by subscribing to our newsletter!
Leave a Reply