Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
Only US, EU, Japan decisions remaining for Korean Air-Asiana takeover
Korean Air B787-9 / Courtesy of Korean Air
By Kim Hyun-bin
By Kim Hyun-bin
Korean Air's takeover of Asiana Airlines is under the spotlight after Hanwha Group gained the green light to acquire Daewoo Shipbuilding & Marine Engineering (DSME).
Korean Air has gained approval from competition authorities from 11 countries and is currently awaiting approval from the U.S., the European Union (EU) and Japan. Adjustments to the airlines' combined operation cannot be initiated until the mandatory reporting countries give their approval.
The U.S. Department of Justice received additional information related to the acquisition from Korean Air in August last year and extended the review period the following November. The EU is conducting an in-depth review with a deadline of Aug. 3, and pre-consultations with Japan are underway.
The outline of the combination of the two airlines' operations under Korean Air is expected to be revealed in the second half of this year, but some believe the process may continue until the first half of next year due to the EU's stricter standards.
Some industry officials predict that Korean Air may have to hand over its overseas airport slots to foreign airlines as a way to alleviate monopoly concerns and gain the approval of the EU, which could weaken Korea's aviation competitiveness. Korean Air has reported a business combination to competition authorities in 14 countries for the acquisition of Asiana Airlines, and 11 countries ― Turkey, Taiwan, Thailand, the Philippines, Malaysia, Vietnam, Korea, Singapore, Australia, China and the United Kingdom ― have either approved or completed the review of the merger.
"We are doing our best to get approval for the business combination as soon as possible and continuing close consultations with the U.S., EU and Japanese competition authorities," Korean Air said.