Share Acquisition on the 11th... Subsidiary Integration Completed
Asiana and Subsidiary LCC Management Change in January
Corporate Culture, Mileage System Integration Underway
Korean Air is finalizing its merger with Asiana Airlines after more than four years. Following the acquisition of shares, it plans to expedite the integration into its subsidiaries by conducting executive appointments within the year.
According to industry sources on the 11th, Korean Air acquired new shares of Asiana Airlines on this day, securing a 63.88% stake, and will incorporate it as a subsidiary starting from the 12th. In January next year, it plans to conduct executive appointments, selecting new CEOs and key executives for Asiana Airlines and its low-cost carrier (LCC) subsidiaries. Subsequently, Asiana Airlines will be operated independently for about two years, focusing on unifying corporate culture and mileage systems.
Within the industry, Song Boyoung, Executive Vice President and Head of Passenger Business Division at Korean Air, is considered a strong candidate for the new CEO of Asiana Airlines. For the new CEOs of Asiana Airlines’ LCC subsidiaries, Air Busan and Air Seoul, Jeong Byeongseop, Managing Director in charge of Passenger Sales at Korean Air, and Kim Jungho, Senior Deputy General Manager at Korean Air, are mentioned. A Korean Air official stated, "No major decisions regarding personnel have been finalized yet."
Korean Air plans to focus on the physical and chemical integration of the two companies under the new management system. Priority is being given to the mileage integration process. Although the mileage values of the two companies differ, both have secured a significant number of loyal customers, which could lead to conflicts. Generally, when accumulating mileage through affiliated credit cards, Korean Air’s mileage accumulation rate is lower, making its mileage value higher. However, Asiana Airlines is a member of the world’s largest airline alliance, Star Alliance, and its mileage is considered more versatile when used with foreign airlines. Korean Air is expected to submit an integration plan to the Fair Trade Commission in the first half of next year.
Additionally, Korean Air plans to carry out tasks such as seniority alignment among pilots, organizational culture integration, and unified corporate identity (CI) during the subsidiary operation period. Alongside this, integration efforts among LCCs will be promoted, centered on Jin Air, an LCC under Korean Air.
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