European Union Likely to Approve Korean Air-Asiana Merger by the End of This Month

EC "Passenger Division Approval OK... Only Cargo Under Review"
On-site Inspection Completed... Final Check of Air Incheon Operational Capability
Asiana Cargo Acquisition Contract Scheduled for January Next Year
Four-Year Completion of Korean Air and Asiana Airlines Merger

The European Commission (EC), which is reviewing the merger between Korean Air and Asiana Airlines, is reportedly in the final stages of reviewing the sale of Asiana's cargo business. It has already determined that the transfer of four European passenger routes, a condition set for the merger, has been fulfilled.

According to industry sources on the 21st, the EC conducted an on-site inspection of Air Incheon in August and is now in the final review phase. It is said to be at the stage just before granting final approval, examining comprehensive operational capabilities such as finances and workforce composition. An industry insider stated, "Both Korean Air and Air Incheon are expected to be approved without issues," adding, "We understand that the EC may give final approval as early as the end of this month."

The sale of the cargo division was a condition set by the EC for approving the merger of Korean Air and Asiana Airlines. Air Incheon plans to finalize the acquisition contract for Asiana Airlines' cargo division around January next year, after Korean Air obtains the EC's final approval and acquires new shares of Asiana Airlines by the end of this year. After completing the EC's on-site inspection, Air Incheon is currently working with Korean Air, Asiana Airlines, and others on obtaining permissions for operations such as flights to the Americas. An Air Incheon official explained, "We have completed all possible measures related to the EC inspection and are just waiting for the decision," adding, "After the final contract, we are preparing all necessary arrangements aiming for the first flight on July 1 next year."

It is also reported that corrective measures in the passenger sector have been met. A Korean Air official stated, "We received confirmation that the European Union (EU) requirements to provide passenger services of a certain scale for a certain period on four routes operated by T'way Air have been fulfilled, and that the requirement to sell tickets on these routes until October 2025 has also been satisfied."

In February this year, the EC conditionally approved the merger of Korean Air and Asiana Airlines, imposing corrective measures to transfer four passenger routes?Frankfurt, Paris, Rome, and Barcelona?to domestic low-cost carriers (LCCs). T'way Air, which took over these routes, completed the transfer by launching flights to Frankfurt on the 3rd, following Rome, Paris, and Barcelona. The EC reviewed the operational safety of these routes and whether a healthy competitive environment with Korean Air could be established.

Within the aviation industry, it is expected that the U.S. Department of Justice (DOJ) review will conclude once the EC grants final approval. Unlike competition authorities in the EU, Japan, and other countries, the DOJ does not separately announce approval results. If the DOJ does not file an antitrust lawsuit against the merger, it is considered approved. Once approval from the U.S. is obtained, Korean Air will have secured all approvals from the 14 essential reporting countries. Korean Air plans to acquire new shares of Asiana Airlines and incorporate it as a subsidiary by the 20th of next month, then operate as a single company after two years.