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EU to decide on Korean Air-Asiana merger by mid-February

Published: 07 Dec. 2023, 10:32 Updated: 07 Dec. 2023, 17:07

SEO JI-EUN
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Korean Air and Asiana Airlines planes are parked at Incheon International Airport on Nov. 2. [YONHAP]

European Union (EU) antitrust regulators set a deadline of Feb. 14 to decide whether to approve Korean Air's acquisition of its smaller rival, Asiana Airlines.

The aviation industry is eyeing the regulators' upcoming decision, expecting an announcement before the set deadline.

The European Commission, the executive branch of the EU, had paused its investigation on June 23, awaiting information requested from the involved companies addressing concerns of the merger impeding competition in the markets for passengers and cargo transport businesses between the EU and Korea.

Korean Air submitted a set of remedies to the EU on Nov. 3, including selling Asiana Airlines' cargo business and divesting routes to four European cities, also providing additional information following the submission.

"Now that the EC has lifted the 'Stop the Clock' mechanism, our goal is to work diligently in the upcoming assessment to secure approval as quickly as possible," a Korean Air official said Thursday.

Final decisions from U.S. and Japanese competition authorities are still pending, and failure to secure approval from any one of these jurisdictions could potentially lead to the merger being scrapped.

BY SEO JI-EUN [[email protected]]