Korean Air has finalized its acquisition of Asiana Airlines, acquiring a 63.88% stake in the rival carrier, marking the end of a four-year process that began in November 2020. The acquisition was completed on December 12 with the issuance of 131,578,947 new shares of Asiana Airlines, making it a subsidiary of Korean Air.
The completion follows Korean Air’s payment of 800 billion Korean Won (KRW) to Asiana on December 11, which finalized the share purchase transaction. Including previous payments, the total investment amounts to KRW 1.5 trillion.
Asiana Airlines will convene an extraordinary general meeting on January 16 to appoint new board directors nominated by Korean Air, a further step in solidifying the new ownership structure.
Korean Air plans a two-year integration process to optimize flight schedules on overlapping routes, expand services to new destinations, and invest in enhanced safety measures.
According to the airline, this integration will not involve workforce restructuring. Instead, the combined organization anticipates natural staff growth through business expansion and will reassign employees in overlapping roles.
Further, Korean Air will submit a framework for integrating the two airlines’ frequent flyer programs to the Korea Fair Trade Commission by June 2025. Program details will be communicated to customers after regulatory review.
The acquisition is described as a strategic milestone for Korea’s aviation industry. Korean Air intends to fortify the country’s aviation capabilities and competitiveness in the global market.
The merger has faced scrutiny from competition authorities worldwide, securing approvals from several countries after years of evaluation. Key approvals were granted by the European Commission and the U.S. Department of Justice in late 2024, which cleared the path for the final acquisition. Earlier approvals included those from authorities in Turkey, Taiwan, Thailand, the Philippines, Malaysia, Vietnam, Singapore, Australia, China, the UK, and Japan.
As part of the merger agreement, Korean Air has divested some of Asiana’s assets, including selling off its freighter business to Air Incheon. The route transfer of several European routes to T’way Air also occurred earlier in 2024.
Korean Air, a founding member of the SkyTeam alliance, operates from its hub at Incheon International Airport (ICN). Before the COVID-19 pandemic, it carried over 27 million passengers annually, operating a fleet of 158 aircraft to 115 cities in 40 countries.
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