Korean Air
- IATA/ICAO Code
- KE/KAL
- Airline Type
- Full Service Carrier
- Hub(s)
- Incheon International Airport
- Year Founded
- 1969
- Alliance
- SkyTeam
- CEO
- Walter Cho
- Country
- South Korea
Various competition and regulatory agencies, including those in the European Union (EU) and China, haven’t yet cleared Korean Air’s planned merger with Asiana Airlines. In addition to approval from antitrust agencies at home, Korean Air needs clearance from the relevant antitrust agencies in most major markets where it flies. But so far, not all jurisdictions have come onboard.
South Korean antitrust authorities approve the deal, but other countries are slower
Korean Air wants to spend US1.5 billion to buy a 63.9% in smaller rival Asiana. Though styled as a merger, it is effectively a takeover that will see the Asiana brand disappear. The two airlines have traditionally competed on nearly 90 routes. Despite raising concerns the merger could harm competition on specific routes, South Korea’s Fair Trade Commission approved the buyout earlier this year (with some conditions).
While antitrust authorities in at least eight other jurisdictions have approved the buyout, peer agencies in various other markets both airlines normally fly to, including the US, EU, Japan, China, UK, and Australia, have yet to greenlight the deal. And according to sources, it’s the EU and Chinese authorities that will potentially prove the most problematic for Korean Air.
Korean Air’s merger with Asiana isn’t a done deal yet as various antitrust agencies delay their decision. Photo: Airbus
Korean Air’s merger application is still in the EY’s “pre-consultation stage”
Korean Air’s application to the EU’s antitrust authorities remains in the “pre-consultation stage” despite submitting that application in January 2021.