Korean Air and Asiana Airlines are undergoing a corporate merger review by the European Union (EU), which on the 17th (local time) expressed a negative opinion, raising concerns about potential competition restrictions if the merger proceeds. The EU is scheduled to make a final decision on the merger approval in August.
The EU Commission announced that it sent Korean Air a Statement of Objections (SO), containing the results of this preliminary investigation. The SO is a document that includes interim review findings.
The Commission stated, "(In the event of a merger) competition in passenger transport services could be reduced on four routes between Korea and France, Germany, Italy, and Spain," and "there are also concerns about reduced competition in all cargo transport services between Europe and Korea."
Accordingly, Korean Air must submit a related response within a set deadline. Korean Air stated that the issuance of this SO is a routine procedure in the review process and that it will make every effort to obtain final approval.
The EU plans to comprehensively consider the corrective measures proposed by Korean Air and the SO response to decide by August 3 whether to grant conditional approval for the merger. Korean Air, which is pursuing the acquisition and merger of Asiana Airlines, is currently awaiting approvals from the EU, the United States, and Japan.
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