U.S. needs more time to approve Korean Air Lines, Asiana Airlines merger

Korean Air Lines' planes are stationed at Incheon International Airport [YONHAP]

The United States will require more time to approve Korean Air Lines’ acquisition of Asiana Airlines.

Despite local media reports that the U.S. Department of Justice would announce results of the merger review of the two airlines Wednesday, Korean Air Lines said the same day that the process will need more time.

Korean Air Lines says the U.S. regulator isn’t postponing the decision, considering it didn’t decide on a set deadline for the announcement in the first place. The carrier also clarified the regulator just needs more time to review, not that it deferred the merger or requested additional measures to ensure market competition.

“Korean Air Lines has been submitting necessary documents and partaking in investigations conducted by the U.S. regulators, and we will continue to do so to finalize the review process,” Korean Air Lines wrote in a statement Wednesday. “We finished an interview regarding the merger review last week, and we think that could be one of the reasons why the review may need more time.”

“Merger reviews are still going on in other jurisdictions, meaning there is no need to rush, which could be another reason why the United States is taking more time to review the decision.”

Korean Air Lines is waiting for approvals from five jurisdictions such as the European Union, the United States, China, Japan and Britain.

On Tuesday, Britain’s antitrust regulator requested the carrier submit additional remedies to ensure market competition by Nov. 21, expressing concerns that the merger could lead to higher ticket prices for passengers. The proposal will be reviewed until Nov. 28. If accepted, Korean Air Lines will get British approval for the merger, but if not, the merger will have to go through an additional in-depth Phase 2 investigation.

In 2020, Korean Air Lines signed a deal to acquire a 63.88 percent stake in Asiana Airlines and merge with it, hoping to complete the acquisition next year and introduce the merged carrier in 2024.

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