Korean Air-Asiana merger one step closer to UK approval

Korean Air Lines and Asiana Airlines planes at Incheon International Airport [YONHAP]

Britain’s antitrust regulator is one step closer to approving the Korean Air Lines acquisition of Asiana Airlines.

The Competition Markets Authority (CMA) announced Monday that it considers “there are reasonable grounds for believing that undertakings offered by Korean Air Lines might be accepted by the CMA.”

The announcement comes after the antitrust regulator expressed concerns over the merger on Nov. 14, requesting the carrier submit possible remedies to ensure competition in Britain’s airline market. The CMA said the merger could lead to higher ticket prices and a lower quality of service since Korean Air Lines and Asiana Airlines are the only two carriers operating direct passenger flights between Seoul and London.

Korean Air Lines said it can’t disclose the remedies suggested to the CMA.

The announcement doesn't mean the CMA will be automatically approving the merger. Final approval will come after the CMA conducts further deliberation, which is expected in January next year.

Following the CMA announcement, Asiana Airlines shares rose 11.54 percent to 13,050 won on Monday. Korean Air Lines rose 2.65 percent to 25,200 won. Asiana IDT, an IT service company 76.2 percent owned by Asiana Airlines, rose 29.71 percent to 15,500 won.

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

In 2020, Korean Air Lines signed a deal to acquire 63.88 percent of 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]