Transport ministry approves Korean Air's integration with Asiana Airlines

A Korean Air passenger aircraft is seen taking off at Incheon International Airport, April 1. Yonhap

Korea's transport ministry on Thursday approved Korean Air Co.'s integration with Asiana Airlines Inc., paving the way for the launch of a combined entity in December.

The Ministry of Land, Infrastructure and Transport made the decision after Korean Air and Asiana Airlines applied for approval following the signing of an integration agreement last month.

In November 2020, Korean Air signed a deal to acquire a controlling stake in Asiana Airlines, aiming to form the world's 10th-largest airline by fleet size. Asiana Airlines is currently being operated as a Korean Air subsidiary.

The transport ministry said its advisory panel, composed of aviation, legal and accounting experts, conducted a thorough review of the application and concluded that the merger meets the legal requirements.

The approval, however, was granted on the condition that Korean Air guarantees aviation safety and consumer convenience.

The new entity will officially launch on Dec. 17.

"The ministry will thoroughly oversee the integration to ensure aviation safety and consumer convenience are not undermined, given the significant impact the merger between the country's largest and second-largest air carriers will have on the overall aviation market," a ministry official said.