Cho Won-tae, Chairman of Korean Air, "Merger Approval from US and EU Expected Within This Year"

[Asia Economy Reporter Hyunseok Yoo] Cho Won-tae, Chairman of Korean Air, said on the 22nd, "We expect to receive approval for the merger of Korean Air and Asiana Airlines from U.S. and EU (European Union) authorities by the end of the year at the latest."

Chairman Cho made this statement in an interview with the global aviation magazine 'Flight Global' in Doha, Qatar, where he visited to attend the IATA (International Air Transport Association) annual general meeting.

Chairman Cho explained, "We anticipated there might be issues during the U.S. and EU reviews, but we are now properly on track." He added, "Reviews in other countries are proceeding at a similar pace, so we expect everything to be completed by the end of the year."

He also emphasized, "We are in talks with other airlines interested in operating Korean routes," and "We are actively responding to the demands of U.S. and European competition authorities."

It is reported that Korean Air is requesting other airlines to commence operations and expand flights on routes with high market share to alleviate monopolies following the merger with Asiana Airlines.

Regarding maintenance issues or cost increases that may arise due to the diversification of aircraft types after the merger, he said, "Having a variety of aircraft types is by no means ideal," and added, "We did not expect to have the A350 (operated by Asiana Airlines)." He continued, "We want to simplify the aircraft types. It is difficult now, but we will have to see how things develop."

Chairman Cho explained that the integrated low-cost carrier (LCC), formed by combining Korean Air’s subsidiary Jin Air and Asiana Airlines’ subsidiaries Air Busan and Air Seoul, will operate with Incheon International Airport as its hub. He mentioned, "The merged entity (integrated LCC) will operate under the Jin Air brand," and "Busan is a very important market and will be maintained as the second hub."

In an interview with CNBC, Chairman Cho also stated, "The Korea Fair Trade Commission approved the merger after a one-year review, and I am confident that reviews in six other countries will go well," adding, "Once the airlines merge, they will generate more revenue in the future." He further predicted, "Passenger demand is increasing, and cargo will continue to be strong until next year. It will take a few years for passenger numbers to recover to 2019 levels. Depending on the economic situation, the recovery period could take longer."