US Approves Korean Air & Asiana Airlines Merger

Korean Air and Asiana Airlines have received US approval for their merger, which will greatly benefit the two companies.

According to Maeil Business Newspaper, the formal merger is now coming together following approval from the US Department of Justice (DOJ), the last governing body needed to approve the deal.

Regulators worldwide always scrutinize such consolidation efforts because they fear how consumers and competitors will be treated if such a deal progresses. Previously, the two South Korean-based airlines had obtained approval from all but the United States.

Korean Air executives had hinted at their expectations that approval would come through by year-end, and that has now occurred with Asiana Airlines being integrated into Korean Air and helping create one of the largest airline groups in the world.

While approval is one crucial pillar, the hard yards will begin now as a new Korean Air looks to be formed with substantial increases in overall fleet, employees and general assets.

The South Korean carrier has already been planning for an acquisition to obtain formal approval, which is visible through the public order for the Airbus A350, an aircraft type utilised at Asiana Airlines that will carry over.

However, as confirmed by Reuters, thanks to a Korean Air spokesperson, much is expected to change with the departure of three brands in total as part of a refined business.

Korean Air will axe the Air Busan, Air Seoul, and Asiana Airlines branding and look to consolidate into just one brand, Jin Air, a well-established carrier.

The new Korean Air will have many assets to utilise to meet its requirements. It will be able to cover all parts of the globe and ultimately be one of the biggest companies in the world on both regional and international fronts.

Korean Air & Asiana Airlines Get EU Approval

The US approval also comes just moments after the European Union competition watchdog approved the merger, noting that all avenues had been satisfied and that a deal could progress to the next stage.

When the EU approval came through, there was strong reporting that the U.S. had already informed Korean Air that they would not reject such a deal between the South Korean carriers and that their approval would be imminent.

The EU’s approval largely rested on Korean Air’s ability to amend its conditions in the merger obligations to ensure that competition would still be possible across key markets, including the freight division.

Freight wasn’t the only concern present, and the EU also discussed the idea of a remedy carrier often used in airline mergers. In the case of the two mergers, T’way Air was put forward as the company to take on services through aircraft, crew and other required parts.