Korean Air’s planned takeover and merger with local rival Asiana Airlines will be delayed until 2024.
According to an integration plan submitted to creditor Korea Development Bank the transaction will go ahead in 2022 but the airlines won’t likely integrate for another two years.
Korean Air requires antitrust approval from several regulators around the world which will be a lengthy process.
It involves eight regulatory authorities in countries including China, the US and Thailand.
There are also issues with integrating the carrier’s low cost airline brands.
Therefore, the airlines plan to operate separately until a merger is complete in 2024.
The deal needs approval from at least four foreign regulators for it to proceed otherwise the merged company may be forbidden from flying to certain countries.
There are also anti-trust obstacles to overcome in Korea.
The Ministry of Land, Infrastructure and Transport says more than 30 routes that Korean Air obtains from Asiana through the merger will give it a market share of more than 50%.
