Korean Air Receives Merger Approval in Australia

"Not Opposed to Asiana Acquisition Proposal"

[Asia Economy Reporter Yoo Hyun-seok] Korean Air has received approval from the Australian competition authorities for its merger with Asiana Airlines. The Australian competition authorities judged that the possibility of Korean Air raising prices or lowering service levels on the Seoul-Sydney route after acquiring Asiana Airlines is low.

On the 1st, the Australian Competition and Consumer Commission (ACCC) announced, "The ACCC will not oppose Korean Air's proposed acquisition."

The ACCC explained, "This merger will combine the only two airlines currently operating direct flights between Sydney and Seoul," adding, "However, Qantas and Jetstar (Australian airlines) will soon begin operating on this route."

Qantas and Jetstar are selling tickets for the Incheon-Sydney route, which will start operating from November to December this year. Qantas plans to operate both passenger and cargo flights on this route.

Gina Cass-Gottlieb, Chair of the ACCC, said, "This acquisition will combine the only two providers of direct flights between Sydney and Seoul," but added, "The fact that the Qantas Group will provide flights on the Sydney-Incheon route means that effective competition can exist regardless of whether the acquisition proceeds."

Additionally, the ACCC explained, "With Qantas and low-cost carriers (LCCs) providing flights, there is a high likelihood of effective competition regardless of Korean Air's acquisition."