Green light for Korean Air-Asiana merger
Japanese antitrust authority approves 1.2 billion euro deal
Japan Fair Trade Commission (JFTC) has approved the merger between South Korean airlines Korean Air and Asiana Airlines. This is the 12th approval by a competition authority out of the 14 needed to make effective the agreement between the two companies, signed in November 2020. The deal worth 1.2 billion euros. Dialogue is underway with the remaining two authorities: those of the European Union and the United States.
If finally approved, the purchase of 100% of Asiana by Korean Air will lead to the creation of the tenth largest airline in the world in terms of fleet: respectively 81 aircraft (plus another 31 aircraft on order) and 164 aircraft (of which will add 96 commissioned), for a total of 372 fixed-wing aircraft, to which those of the respective controlled airlines must be added.
For this reason, the Japanese JFTC has asked Korean Air to submit "corrective measures on selected routes between South Korea and Japan, where the combined market share (Korean Air, Asiana Airlines and their respective subsidiaries Jin Air, Air Busan, Air Seoul) would limit competition". Among the concerns are possible monopolies on the cargo network. In regard to this, Korean Air said it will cede some slots on seven Korea-Japan civil routes and Asiana's cargo business.
On the topic, see also the article published by AVIONEWS.
AVIONEWS - World Aeronautical Press Agency