UK regulator starts scrutinizing Korean Air-Asiana merger

A Korean Air Lines aircraft takes off from Incheon International Airport. [NEWS1]

The U.K.'s antitrust regulator has begun looking into Korean Air Lines’ acquisition of Asiana Airlines.

The Competition Markets Authority (CMA) announced it launched an investigation into the merger on Sept. 16, but work won't start in earnest until Tuesday due to the funeral of Queen Elizabeth II taking place on Monday.

Korean Air Lines has been submitting documents needed for the pre-merger inquiry process since last November.

The CMA is supposed to make its decision by Nov. 14, but that may be delayed for a second round of investigation if the regulator finds the merger will significantly reduce competition.

Korean Air Lines is still waiting for approval from five jurisdictions: the United Kingdom, European Union, China, Japan and the United States.

Authorities in the United States and China are currently going through merger inquiry processes. Incheon-Los Angeles is one of the routes the merged entity will have dominance in, and Korean Air Lines is reported to have offered Southeast Asia carriers some flights. The carrier didn’t confirm those reports, but admitted it is in talks with local and foreign airlines to enhance competition on some routes.

The merger is still in the pre-review stage in Europe and Japan, with Korean Air Lines submitting relevant documents.

Korean Air Lines expects the merger to get approval from the United States and Europe by end of this year, and complete the merger in 2024.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]