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Korean Air completes Asiana acquisition

Korean Air has finalised the takeover of rival Asiana Airlines, four years after announcing the acquisition in November 2020.

Korean Air haș acquired a 63.88% stake, making Asiana Airlines a subsidiary.

The Korean government-backed deal worth more than $1.35 billion was originally aimed at helping the country’s two largest carriers survive the Covid crisis.

The integration of Asiana Airlines is planned to be completed within two years.

The deal follows Korean Air gaining approvals from competition regulators around the world including the UK’s Competition and Markets Authority  and the European Commission. 

The integration strategy includes network optimisation through diversified flight schedules on overlapping routes, service expansion to new destinations and enhanced safety investments.

“The merger aims to strengthen national aviation industry competitiveness, enhance Incheon airport’s hub capabilities and expand global network reach,” Korean Air said.

“The integration will proceed without workforce restructuring. The combined organisation projects natural staff growth through business expansion, with employees in overlapping functions being reassigned within the organisation.

“The acquisition represents a strategic milestone for Korea’s aviation industry. Korean Air will proceed to implement measures to strengthen the country’s aviation capabilities and enhance its competitive position in the global market.”

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