SEOUL: Korean Air Co., South Korea's largest airline, has finalized its acquisition of Asiana Airlines Inc., making Asiana a subsidiary in a move that concludes a lengthy acquisition process. The integration comes after Korean Air's substantial investment of 1.5 trillion won (approximately US$1.04 billion) for a 63.88 percent stake in Asiana, marking a significant consolidation in the South Korean airline industry.According to Yonhap News Agency, the acquisition process was completed following the approval from antitrust regulators across 14 countries and regions, including the European Union. Korean Air had initially announced its intentions to acquire Asiana in late 2020, and the deal's completion represents a strategic expansion for the national flag carrier.Following the acquisition, Korean Air plans to absorb Asiana after a two-year post-merger integration (PMI) phase. In parallel, Korean Air's budget carrier unit, Jin Air Co., is set to incorporate Asiana's low-cost subsidiaries, Air Seoul Inc. and Air Busan Co. The integration will result in these entities ceasing to exist once the PMI process is finalized. Korean Air aims to enhance business synergies by diversifying time slots on overlapping routes and launching new ones while retaining the current workforce post-PMI.In related developments, Korean Air is required to report the conversion ratio of mileage points between the two airlines to the Fair Trade Commission (FTC) by June next year. The FTC has also mandated corrective measures as a condition of the acquisition to alleviate competition concerns, including maintaining at least 90 percent of pre-merger seating capacity on key routes. Furthermore, the airlines must ensure that seat availability on 40 routes does not fall below 90 percent of their 2019 levels.
- September 12, 2026
