United Kingdom
United States
Asia Pacific
Korean Air defends Asiana merger against monopoly concerns
Korean Air president Woo Ki-hong has disputed concerns KAL’s planned merger with Asiana Airlines will lead to a local air market monopoly.
A combined business would have 40% of share at Seoul Incheon International Airport.
Under Korean law an acquisition would not normally be approved if market share was 50% or more.
However there are still concerns as the two airlines along with their respective low cost brands held a 66% market share nationally last year.
"Jin Air, Air Busan and Air Seoul are run as separate companies competing with Korean Air and Asiana Airlines and, as such, their market shares should not be included in the calculation," he said.
He said when the merger is complete it will result in two distinct companies – one full-service and one low-cost carrier.
The Korea Fair Trade Commission hasn’t yet decided whether to include the low-cost carriers’ market shares in the calculation to determine possible competition concerns.
Korean Air said it will start due diligence on Asiana Airlines which will take several weeks.
At the same time it is working on an integration plan for the airlines.
"The company will look into Asiana’s cost structure and contracts as it is scheduled to come up with the post-merger integration plan by 17 March," Woo Ki-hong said.
He is confident authorities in the US, the European Union, China and Japan will approve the merger.
"There seems to be no problems in obtaining approval from overseas for the merger of the two airlines, given bigger merger deals went smoothly in the past."
A deal would create the world’s 10th-largest airline by fleet size.
Written by Ray Montgomery, Asia Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Tony from Gatto’s Pizza on Columbus’s Unique Pizza Trail
Sophia Hyder Hock on Global Social Inclusion in Tourism
Sustainable Tourism: Don Welsh on Community Values and Global Collaboration
Jane Cunningham: Enhancing European Engagement in Tourism
Kristin Dunne: Navigating Destination Strategy
Revolutionizing Mobile Connectivity: Boris Bijlstra on HUBBY eSIM
Capturing Glasgow’s Vibrancy: An Interview with Susan Deighan, Chief Executive of Glasgow Life
Lebua Hotel & Resorts: Rajan Khurana on Hospitality and Bangkok’s Charms
Sustainable Tourism and Growth: Insights from Chiravadee Khunsub from Tourism Authority of Thailand
Revolutionizing Travel: SmartSIM USA’s Dale Takio Unveils the Power of E Sims
TravelMole Interview with Hishan Singhawansa, Deputy CEO of Cinnamon Hotels & Resorts, Sri Lanka
Unveiling the Essence of Magari Tours: A Dive into Authentic Italian Experiences
EU airports bring back 100ml liquid rule
British Airways passengers endure 11-hour 'flight to nowhere'
CLIA: Anti-cruise demos could cause itinerary changes in Europe
Co-pilot faints, easyJet flight issues ‘red alert’
Gatwick braces for strike