Korean Air-Asiana merger has 'fulfilled' conditions for EU approval
Published: 21 Nov. 2024, 18:38
Korean Air has divested four European passenger flight routes to low-cost carrier T'way Air under the conditional approval the European Commission (EC) offered in February. Korean Air has agreed to sell Asiana's cargo business to Air Incheon as an additional remedy.
In a statement to Yonhap News Agency, Lea Zuber, EC spokesperson for competition, said the commission had concluded Friday that T'way Air had “fulfilled the completion condition for the passenger commitments set out in the conditional approval decision.”
The conclusion was reached based on a report by a monitoring trustee, she said.
Final EC approval for the Korean Air-Asiana merger, however, remains pending, according to the spokesperson, as the EC “is currently assessing” Air Incheon's proposed purchase of Asiana's cargo business division.
“The closing of the transaction between Korean Air and Asiana Airlines remains conditional upon the commission's approval of a suitable buyer for the cargo divestiture business,” the spokesperson said. “We cannot prejudge its timing or outcome.”
On the passenger route transfer to T'way Air, the EC concluded that the budget carrier has met the requirements of operating “a certain number of services on each of the four remedy routes,” connecting Incheon, South Korea's main gateway, with Frankfurt, Paris, Rome and Barcelona, for a certain period of time.
T'way has also fulfilled its requirement to sell tickets for future services on the routes for two upcoming International Air Transport Association seasons, or until October 2025, according to Zuber.
Many aviation industry watchers in Korea had expected the EC to make a final decision on the 1.8 trillion won ($1.4 billion) merger deal in November.
The latest EC statement suggests that final EU approval may come at a later time.
Korean Air has so far won approval from 12 countries and regions and is awaiting final approval from the EU and the United States.
A spokesperson at the U.S. Department of Justice (DOJ) responsible for reviewing antitrust matters declined to comment to Yonhap on the department's review of the merger.
The DOJ had reportedly considered opening a lawsuit to block the deal over competition issues in the U.S. market.
Korean Air has taken proactive measures to address monopoly concerns, such as expanding its code-sharing partnership with Air Premia for North American routes.
“Korean Air will continue to communicate closely with the relevant authorities to secure approval from the remaining regulatory bodies, including the DOJ,” a Korean Air spokesperson told Yonhap News Agency last week.
Korean Air acquired a controlling stake in Asiana in November 2020, creating the world's 10th-biggest airline by fleet.
The nation's two full-service carriers account for a combined 40 percent of passenger and cargo slots at Incheon International Airport.
Yonhap
with the Korea JoongAng Daily
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