Approval Status in Key Markets
The proposed merger between Korean Air and Asiana Airlines has been met with scrutiny from competition authorities around the world. While 11 key markets have approved the merger, the European Commission (EC), the United States, and Japan still need to give their approval.
European Commission's Concerns
The EC has set a tentative decision date of February 19, 2024, for the merger. However, concerns have been raised about the impact on cargo and passenger routes between South Korea and European airports. In May, the EC sent Korean Air a statement of objections to the proposed merger, citing concerns about the reduction of passenger transport services on four routes between South Korea and France, Germany, Italy, and Spain, as well as a potential reduction in cargo transport services between Europe and South Korea.
Korean Air's Proposed Remedies
Korean Air has since sought to address these concerns by agreeing to hand over slots to other airlines in four European airports and selling Asiana's cargo business. However, these proposed remedies are contingent upon the EC's approval of the merger.
Concessions Secured in Other Markets
Competition authorities in other markets have also secured concessions from Korean Air in exchange for their approval. For example, in the United States, authorities rejected Korean Air's proposal to have Air Premia operate flights on the South Korea-US country pair, stating that they wanted an alternative airline at least the size of Asiana.
Korean Air's Commitment to Obtaining Approval
Despite these obstacles, Korean Air remains committed to obtaining approval for the merger. The airline has reportedly been investing considerable resources into securing approval from US authorities.
Summary
The proposed merger between Korean Air and Asiana Airlines is still facing hurdles in several key markets. While progress has been made in addressing concerns raised by competition authorities, the final decision rests with the EC, the United States, and Japan. Korean Air is working diligently to obtain approval and move forward with its plans for the merger.
(This article is sourced from ch-aviation.com and curated by Thetransporteronline24)
