EU Greenlights Korean Air’s $1.4 Billion Merger with Asiana Airlines.

Seoul: Korean Air Co. announced Thursday that the European Union has granted final approval for its merger with local competitor Asiana Airlines Inc.According to Yonhap News Agency, the European Commission (EC), the EU's executive body, finalized its approval of the 1.8 trillion-won (US$1.4 billion) merger after evaluating remedies proposed to address competition concerns over the past nine months. The leading South Korean airline revealed in a press release that the EC's decision came after verifying Korean Air's compliance with all required conditions for merging with Asiana Airlines.As part of the conditional approval by the EC in February, Korean Air divested four European passenger flight routes to local low-cost carrier T'way Air Co. Additionally, Korean Air agreed to sell Asiana's cargo business to Air Incheon Co. The EC has approved Air Incheon as the purchaser of Asiana Airlines' freighter business, recognizing that Air Incheon meets the necessary financial and operational criteria to maintain an d develop the business as a competitive force.Moreover, the commission confirmed earlier this month that T'way Air has fulfilled its commitment in operating the four European routes acquired from Korean Air. With the EC's approval, Korean Air has now secured endorsements from 13 competition authorities globally, including those in South Korea, China, Japan, and Australia.Korean Air has submitted the EC's final approval to the U.S. Department of Justice (DOJ) and anticipates completing the transaction by the end of the year. Industry observers predict that Korean Air will receive the final required approval from the U.S. DOJ, which manages antitrust reviews in the United States, next month. Although the DOJ considered a lawsuit to block the merger over competition concerns, it is believed to have decided against legal intervention.To mitigate monopoly concerns regarding U.S. routes, Korean Air has expanded its code-sharing partnership with Air Premia for North American routes. This strategic move follows Korean Air's acquisition agreement in November 2020 to secure a controlling stake in Asiana, aiming to establish the world's 10th-largest airline by fleet size. Together, the two carriers represent a combined 40 percent of passenger and cargo slots at Incheon International Airport, Seoul's primary gateway.