The Strategist

EC approves merger of South Korea's two largest airlines

02/15/2024 - 05:25

The European Commission (EC) confirmed in a statement that it had authorized Korean Air's acquisition of rival Asiana Airlines.

The $1.4 billion agreement was first disclosed in 2020, and U.S. officials must also approve it.

The European regulator had earlier expressed concern that the merger would reduce competition between the European Economic Zone and South Korea in the air passenger and cargo industries.

In order to allay those worries and complete the transaction, Korean Air will need to find a buyer for its Asiana cargo division and provide T'Way Air, a low-cost carrier based in South Korea, with slots and other resources so that it may begin operating flights between Seoul and many European destinations, including Barcelona, Paris, Rome, and Frankfurt.