Korean Air's Sky-High Merger Completed

Korean Air has finalized its purchase of Asiana Airlines, forming one of Asia's largest carriers. Initially announced four years ago, the merger faced regulatory hurdles but was completed for 1.8 trillion won. The combined airline will dominate South Korea's market with plans for expansion and no layoffs.

Korean Air has officially completed its purchase of South Korean rival, Asiana Airlines, making it one of Asia's largest carriers. The deal, valuing at 1.8 trillion won ($1.3 billion), marks the longest-ever airline merger and was initiated to assist Asiana during its financial difficulties amplified by the COVID-19 pandemic. Although the merger faced competition concerns, Korean Air managed to secure approval with significant concessions.

The acquisition greenlights Korean Air's control over 63.88% of Asiana, transforming it into a subsidiary three years later than expected. This expanded aviation group will command over half of South Korea's passenger capacity, ranking as the world's 12th largest airline, according to recent data. Korean Air aims to smoothly integrate Asiana's operations without any layoffs.

Plans include developing a unified low-cost carrier and streamlining flight schedules. Additionally, the merger will enhance the capabilities of Incheon International Airport, South Korea's major aviation hub, boosting its competitive edge against Asian airports in Hong Kong and Singapore. The merger plan will undergo review by authorities by June 2025, as Korean Air further solidifies its global standing.

(With inputs from agencies.)