A merger between Korean Air and Asiana Airlines could see passengers paying more to fly from London to South Korea, warns the UK competition watchdog.
Korean Air announced its acquisition of Asiana in November 2020 and has since been negotiating with antitrust authorities in the two airlines’ destinations.
The UK’s Competition and Markets Authority has been considering the impact of the deal for UK customers and has outlined competition concerns about air passenger and cargo services.
In a statement on Monday (November 14), it said: “Korean Air and Asiana Airlines are the only carriers operating direct passenger flights between London and Seoul and currently compete closely for customers.
“The only competition that the merged businesses would face on this route would come from providers of indirect flights, which the CMA’s investigation found are a much weaker option for customers.
“On this basis, the CMA found that the merger would risk higher prices and a reduced quality of service for passengers flying between London and Seoul.”
Almost 150,000 passengers travelled from the London to Seoul in 2019 and this level of demand is expected to return in the next few years.
Colin Raftery, senior mergers director at the CMA, said: “Korean Air and Asiana Airlines are the two main players on the London to Seoul route and the deal risks UK customers and businesses paying over the odds or receiving a lower quality of service.
“Should Korea Air and Asiana Airlines fail to address our concerns, this deal will progress to a more in-depth investigation.”
The merger remains subject to merger control clearance in the US, China, Japan and the EU.
The airlines have until November 21 to submit proposals to address the CMA’s competition concerns.
The CMA will then have until November 28 to consider whether to accept these in principle or refer the deal for an in-depth phase-two investigation.