EU says Korean Air-Asiana merger could hinder competition

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EU says Korean Air-Asiana merger could hinder competition

Published: 18 May. 2023, 10:31 Updated: 18 May. 2023, 10:38

A Korean Air plane takes off at Incheon International Airport with an Asiana Airlines plane taxing behind. [YONHAP]

The European Union expressed concerns about Korean Air's bid to acquire Asiana Airlines, saying the merger could hinder competition in the airline industry.

The European Commission sent its preliminary view on the merger to Korean Air on Wednesday in a "Statement of Objections."

The statement raised concerns about the potential impediment of competition that could result from the merger.

Specifically, it said that the merger could diminish competition in air passenger services on four routes connecting Korea with France, Germany, Italy and Spain.

The regulator also voiced apprehension that the merger could weaken competition in air cargo services between Europe and Korea.

The commission will review the proposed corrective measures submitted by Korean Air and aims to reach a final decision by Aug. 3.

Following the announcement by European regulators, Korean Air said in a statement, "The release of the European Commission's Statement of Objections is a customary procedure in the evaluation of corporate mergers."

In 2021, Korean Air submitted documentation to antitrust regulators in 14 countries for the review of its merger with Asiana. The company has already received approval from 11 countries, including Britain, Australia, Singapore, Vietnam, Turkey and China. It awaits decisions from the EU, the United States and Japan.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]