Korean Air has finalized the acquisition of a majority stake in Asiana Airlines, completing a deal initially commenced in November 2020, Korean announced Thursday. Asiana now will be a subsidiary of Korean Air.
Korean Air invested 1.5 trillion Korean won, about US$1.05 billion, to acquire a 63.88 percent ownership stake in Asiana.
The European Union gave its final nod to the merger on Nov. 28, leaving the U.S. Department of Justice as the last governmental body to grant approval. DOJ had until Dec. 11 to comment on the deal. Since “the U.S. DOJ didn’t object to the merger, it means [Korean] could go forward with the acquisition,” according to the carrier. “There’s no official approval like for the [European Commission].”
Korean plans to complete the integration with Asiana within two years, which includes network optimization through diversified flight schedules on overlapping routes, service expansion to new destinations and enhanced safety investments, according to Korean, which added that the merger will proceed without workforce restructuring.
Korean plans to submit an integrated frequent-flyer program plan to the Korea Fair Trade Commission by June 2025.
