EU Ponders Launching In-Depth Korean-Asiana Merger Probe

PARIS—The European Commission will decide whether to launch a full-scale antitrust investigation into Korean Air’s takeover of rival Asiana Airlines by a provisional deadline of Feb. 17.  

Korean Air has already obtained approval from South Korean competition authorities for the merger in return for giving up airport slots and traffic rights. The airline must also secure merger approvals in several overseas markets served by both Korean Air and Asiana.  

Reuters reported Feb. 10 that the EC is set to pursue a full-scale antitrust investigation because of concerns about the market power of Korean Air and Asiana combined. An EC competition spokesperson declined to comment on the report.  

The concerns reportedly focus on routes to Barcelona, Frankfurt, Paris and Rome covering both air passenger and air cargo services. Brussels has a history of intervening in South Korean takeovers, having blocked the merger of two South Korean shipbuilders in 2022.

The UK’s Competition & Markets Authority (CMA) is still weighing mitigation measures put forward by Korean Air in January and will make a decision by March 23. The British antitrust regulator had previously expressed concern about the effect of the merger on competition in the UK-South Korea market. To address this, Korean Air offered to make London and Seoul slots available to Virgin Atlantic or another carrier so they could launch their own service. 

On Dec. 8, 2022, the CMA gave notice that it proposed to accept the mitigation measures offered by Korean Air, subject to a final consultation, avoiding the need for a more in-depth investigation. In January it extended that deadline to March.

Korean Air is still waiting for approvals from the U.S. and Japan, while some other countries have already given the green light, including China, which gave its approval to the merger on Dec. 26.  

In early January, Korean Air CEO Walter Cho gave an update on the merger plans, saying: “We are in the last stage[s] with the remaining overseas competition authorities reviewing the merger.”