South korea: South Korea's transport ministry has granted approval for the integration of Korean Air Co. with Asiana Airlines Inc., setting the stage for the creation of a merged airline entity this December.
According to Yonhap News Agency, the Ministry of Land, Infrastructure and Transport reached this decision following an application from Korean Air and Asiana Airlines, which came after the signing of an integration agreement last month. This merger marks a significant milestone following the initial agreement in November 2020, where Korean Air announced its intention to acquire a controlling stake in Asiana Airlines. The objective of this merger is to create the world's 10th-largest airline by fleet size, with Asiana Airlines currently operating as a subsidiary of Korean Air.
The ministry's decision was based on a comprehensive review conducted by an advisory panel consisting of experts in aviation, law, and accounting. The panel concluded that the merger fully complies with legal requirements, allowing the transport ministry to move forward with its approval. However, this approval is contingent upon Korean Air's commitment to ensuring aviation safety and consumer convenience throughout the integration process.
The merged airline entity is scheduled to be officially launched on December 17. A ministry official emphasized the importance of maintaining high standards of aviation safety and consumer convenience, given the merger's considerable impact on South Korea's aviation market. The ministry will maintain vigilant oversight to ensure these standards are upheld as the nation's largest and second-largest carriers combine operations.