South Korea aviation: Korean Air makes important progress on Asiana merger approvals

Korean Air is moving closer to finalising its acquisition of Asiana Airlines this year, after taking some significant steps in Dec-2022 towards gaining the approvals it needs from foreign governments.

In an address to employees on 2-Jan-2023, Korean Air CEO Walter Cho described 2023 as a "pivotal year" for completing the Asiana takeover. "We are in the last stage[s] with the remaining overseas competition authorities [which are] reviewing the merger", he said.

South Korean authorities have approved the acquisition and measures offered to preserve competition, but Korean Air is still seeking clearances from several governments in countries served by both operators. The regulatory process in some countries has taken longer than expected. The lengthy nature of the reviews is likely a reflection of the size of the deal and the importance of the airlines in some markets.

The notable point is that Korean Air has been able to address authorities' competition concerns without diluting merger benefits , and it is likely to be able to do so in the remaining processes.