Korean Air has completed the acquisition of Asiana, Korea’s second-largest airline.
The $1.3 billion deal, which gives the South Korean a 64% stake in Asiana, comes four years after the airlines reached a merger agreement at the height of the Covid-19 pandemic.
According to CAPA Aviation Center analysis, with this merger, Korean Air rose from 22nd to 11th in the world in terms of weekly international flight seats. Asiana ranked 40th in the rankings.
The merger will also give Korean Air Group a 47% share of the Korean international market based on seats for the week of December 2. The total market share includes Korean Air and Asiana Airlines, as well as Korean low-cost brand Jin Air and Asiana low-cost airlines Air Busan and Air Seoul.
Due to the merger, Air Busan and Air Seoul are absorbed into Jin Air. The Asiana brand will continue to fly, and Korean Air will work to complete the integration of the two airlines within two years.
South Korea’s closing comes two weeks after the European Commission approved the deal. Competition authorities in Japan, China and several other major countries have previously approved the partnership. The U.S. Department of Justice has not yet expressed its position on this, although South Korea’s decision to confirm the purchase indicates that approval is expected.
As part of the approval process, competition authorities secured various concessions from South Korea, including leasing four Boeing 787s to relatively new company Air Premia, in a bid to increase competition between South Korea and the United States.
Koreans are flying to 11 U.S. destinations this month, while Asiana Airlines is serving five destinations, all departing from Seoul, according to Cirium flight schedule data.
Air Premia flies from Seoul to Newark, San Francisco and Los Angeles.
