US Justice Department Demand Rumors and Transfer to US Airlines Denied
Even If Slots Are Transferred, US Airlines Cannot Use Them to Strengthen US-Japan Routes
Korean Air has stated that it has never been asked by U.S. competition authorities to reduce its U.S. West Coast routes or transfer its operating rights.
On the 2nd, Korean Air denied the recent rumors about demands to transfer slots, calling them groundless. Slots refer to the rights an airline has to operate at specific times.
Korean Air explained, "The U.S. Department of Justice (DOJ), the U.S. competition authority, has never requested the transfer of slots or reduction of operations on specific Korea-U.S. routes. The role of competition authorities in merger reviews is to assess whether efforts to restore competitive conditions are effective. Domestic airlines have already started new services on U.S. and European routes previously operated by Korean Air, and the sale of Asiana Airlines’ cargo division is underway, indicating that efforts to restore competition are progressing smoothly."
It added, "Unlike Europe, Korea-U.S. routes are liberalized, so new airline entry is encouraged without requiring the merged entity to reduce operations. Especially, airports like Los Angeles and San Francisco do not face slot scarcity, allowing relatively free entry, and the authority to decide on slot transfers at Incheon Airport lies with the Korean government," it elaborated.
Even if slot transfers are a concern, Korean Air argued that those slots can only be used by new or additional flights on the same route. For example, slots returned by Korean Air on Korea-U.S. routes cannot be used by U.S. United Airlines to increase flights on U.S.-Japan routes.
Meanwhile, Korean Air, which is undergoing merger procedures with Asiana Airlines, has received approval or conditional approval from 13 of the 14 major countries except the United States. The DOJ plans to finalize the process after comprehensively reviewing the sale of Asiana Airlines’ cargo division and other factors.
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