Korean Air finalizes Asiana merger amid competition safeguards

Korean Air’s finalized its $1.3 billion acquisition of Asiana Airlines, creating one of Asia’s largest carriers and making the merged airline the twelfth largest globally by international capacity, as reported by Reuters. To address competition concerns, South Korea's government plans to support low-cost carriers (LCCs) with new medium- and long-haul traffic rights and will monitor the combined airline’s compliance with regulatory conditions, such as maintaining 90 percent of prepandemic seat capacity on key routes.

Asiana will operate as a subsidiary for up to two years before full integration under the Korean Air brand. The merger will combine the two airlines’ LCCs into a single carrier and prioritize expanding routes, safety investments, and frequent flyer program consolidation by 2025. The airline will operate a mixed fleet of A220-300s, A321s, A321neos, A330-300s, A350-900s, A380s, 737 MAX 8s, 737-800s, 737-900s, 747-8s, 777-200s, 777-300s, 787-9s, and 787-10s.

The deal faced delays due to regulatory reviews by fourteen jurisdictions and required significant concessions, including selling Asiana’s cargo operations and transferring key routes to competitors. The merger strengthens Korean Air’s position globally, enhancing the network at Incheon International Airport, and Korean Air’s joint venture with Delta will dominate travel between the US and ROK.