Korean Air has completed its acquisition of Asiana Airlines, South Korea's second largest airline.
The $1.3 billion deal comes four years after Asiana Airlines acquired a 64% stake in the airline Reaching a merger agreement during the height of the Covid-19 pandemic.
This merger makes Korean Air The airline rose from 22nd to 11th globally in terms of weekly international seats, according to analysis by CAPA's Center for Aviation. Asiana Airlines ranks 40th on the list.
The merger also gives Korean Air Group a 47% share of South Korea's international market based on seat count for the week ended Dec. 2, including Korean Air and Asiana Airlines as well as Korean low-cost brands Jin Air and Asiana low-cost carriers Air Busan and Air Seoul.
As part of the merger, Air Busan and Air Seoul will be merged into Jin Air. The Asiana brand will continue to operate while Korean Air aims to complete the integration of the two airlines within two years.
South Korea completed the deal two weeks after the European Commission approved the deal. Competition authorities in Japan, China and several other major countries have previously approved the collaboration. The U.S. Justice Department has not yet become involved, but South Korea's decision to finalize the purchase suggests approval is expected.
The competition authority secured various concessions from South Korea as part of the approval process, including leasing four Boeing 787s to the relatively new company air premium Increasing competition between South Korea and the United States
Cirium flight schedule data shows Korean Air will fly to 11 U.S. destinations this month and Asiana Airlines will fly to five destinations – all from Seoul.
Air Premia flies from Seoul to Newark, San Francisco and Los Angeles.
