Korean Air goes all out to get approval for Asiana takeover

Korean Air B787-9 / Courtesy of Korean Air

By Kim Hyun-bin

Korean Air is putting all-out efforts into completing its takeover of Asiana Airlines by mobilizing and investing heavily to persuade competition authorities in major countries, according to the company, Monday.

Competition authorities in each country are making various demands due to monopoly concerns. In order to dispel their concerns, Korean Air is continuing to consult on various corrective measures.

To persuade the authorities of the countries that have not yet approved the deal, the company is operating a dedicated expert group for each country consisting of a total of 100 personnel who are cooperating with domestic and foreign law firms and economic analysis companies.

From December 2020 to February this year, Korean Air spent well over 100 billion won ($75.6 million) on expenses for domestic and foreign law firms and advisers.

"Through active discussions, we have made considerable progress in securing and persuading new airlines to enter the U.S., EU and Japan routes," an official at Korean Air said. “We are doing our best to ensure that the competitiveness of the Korean aviation industry is not damaged in the long term.”

Korean Air must obtain business combination approval from a total of 14 countries, including Korea, to acquire Asiana Airlines. Among them, 11 countries, including Turkey, Taiwan, Thailand, Singapore, Australia and China, have approved the sale, while the U.S., the EU and Japan are still reviewing the deal.

Among countries that are still in the process of screening the takeover deal, Japan is expected to give its approval first. Japan started consultations on corrective measures last month and plans to conclude prior consultations within the first half of this year. After that, it is expected to decide whether to approve the deal.

The EU is also expected to announce the results of the screening at the same time as Japan. The EU started the second stage of its review in February and is expected to announce its decision in early August at the earliest.

In the U.S, the Department of Justice extended its review deadline last November. Industry officials believe the U.S. will make its decision after the EU and Japan. If Japan and the EU approve, the U.S. is highly likely to follow suit in the second half of this year.

“After the acquisition and integration of Asiana Airlines, we will strive to develop the domestic aviation industry and improve customer convenience,” an official from Korean Air said.