Korean Air Not Expected To Lose US Slots

Korean Air has rejected claims that the U.S. DOJ would look to return slots to local operators if it approved an upcoming merger.

As part of consolidation in the Asian aviation industry, Korean Air has been progressing with the merger of Asiana Airlines into its business.

Over recent years, the airlines have received approval from several leading regulators worldwide. However, the U.S. is an area where it lacks approval.

To facilitate such a colossal merger, regulators, such as the EU, have requested several changes to the air freight market. These changes have been made with the best interests of several parties in mind.

For example, these requests to amend the merger conditions are made to ensure the terms are fair for existing competitor airlines and consumers. Once the relevant changes are made, the respective regulator will typically hand down the required approval if satisfied.

In the United States, Korean Air is still seeking approval from this sector, and there have been visible concerns over slots.

Reports suggested that the DOJ would look to return slots on western US routes to airlines such as American Airlines. This would be a condition for allowing the merger between Korean Air and Asiana Airlines to go through.

However, Korean Air has openly rejected these claims, stating that the DOJ did not suggest such a slot transfer on routes between Korea and the United States.

The South Korean-based airline serves several leading markets in the U.S., including Chicago O’Hare, Dallas Fort Worth, Los Angeles International, and New York JFK.

Competition authorities are assessing the business and future outlook to understand the impact and whether the operating environment would remain competitive if the changes, that is, the merger, were approved.

Korean Air believes that the changes enforced by the EU regarding the Asiana Airlines cargo division are only increasing competition across all fronts as more airlines look to expand their global reach and cater to emerging demand.

The expectation is that by the final quarter of the calendar year, Korean Air will hear back from the DOJ regarding a decision. This decision will be crucial in allowing the merger to go ahead or the two companies will face roadblocks in their attempts to come together.