The European Commission has given its conditional nod on Tuesday for Korean Air Lines Co. Ltd.‘s proposed acquisition of Asiana Airlines for $1.6 billion, following alterations aimed at assuaging competition worries.
Conditions Set by European Commission
The commission, in its statement, outlined that Korean Air had agreed to divest Asiana’s global cargo business and open up competition from a low-cost carrier for passenger services to gain approval. However, the green light from the European Union is contingent upon Korean Air’s complete adherence to the agreement concerning flight routes and divestment.
European Commission Approves Korean Air’s Asiana Acquisition : Margrethe Vestager’s Statement
Margrethe Vestager, the executive vice president of the European Commission, emphasized, “Korean Air committed to the divestment of Asiana’s global cargo freighter business to a suitable purchaser; and to the divestment of assets to facilitate the entry of rival airline T’Way on key passenger routes.”
European Commission Approves Korean Air’s Asiana Acquisition : Concessions Made by Korean Air
Korean Air has pledged to provide assets necessary for low-cost South Korean airline T’Way Air Co. Ltd. to operate passenger routes between Seoul and major European cities. The commission stipulates that the merger won’t proceed until T’Way commences operations on these routes.
