SEOUL - The European Union's antitrust regulator announced plans to make a provisional decision on the proposed merger between Korean Air Co. and Asiana Airlines by mid-February. This update marks a significant step in the ongoing review of the merger between South Korea's two largest carriers.
According to Yonhap News Agency, the executive body of the EU, the provisional deadline for reviewing the merger is set for February 14, as stated on its official website. The EC has been examining the merger, announced in 2020, and expressed concerns that the 1.8 trillion-won (US$1.4 billion) deal could limit competition in passenger and cargo air transport services between the EU and South Korea.
In efforts to gain the EC's approval, Korean Air and Asiana Airlines decided last month to sell Asiana's cargo business and divest passenger flight routes to four European cities, reporting this measure to the commission.
So far, the merger has received approval from 11 countries, including Britain, Australia, and Singapore. However, approval is still pending from three key markets: the EU, the United States, and Japan. For the merger to proceed, it must receive the green light from competition regulators in these crucial markets.
Korean Air expressed its commitment to fully cooperate with the EC's review process to expedite approval.