Moreover, Korean Air undertook to offload Asiana’s global cargo flight services business, with the approval hinging on finding a suitable buyer for this division.
Vestager’s Views on Industry Importance
Vestager underscored the significance of the airline industry, stating, “The airline industry is crucial for connectivity and has a significant place in the economy of our member states.”
Antitrust Investigation and Merger Notifications
The European Commission initiated an antitrust probe into the merger in February 2023, primarily over concerns about routes and potential competition issues between EU states and South Korea.
Korean Air revealed that it had filed merger notifications with 14 competition authorities since January 2021, with the Asiana deal still awaiting approval from the U.S. Federal Trade Commission.
Similar Agreement Over U.K. Flight Routes
This decision echoes a previous arrangement regarding U.K. flight routes. Last year, Korean Air inked a deal with Virgin Atlantic Airways Ltd. for the utilization of the London-Seoul route for both passenger and cargo flights.
Approval and Concerns Addressed
Initially, concerns were raised by the Competition and Markets Authority (CMA) about potential dominance on the London-Seoul route resulting from the deal. However, following reassurances, the CMA approved the terms of the $1.6 billion acquisition.
European Commission Approves Korean Air’s Asiana Acquisition : About Korean Air
Korean Air stands as South Korea’s largest airline, offering international passenger and cargo services. The company operates from its global hub at Incheon International Airport, servicing over 100 cities across approximately 40 countries.
