China Approves Korean Air's Acquisition Of Asiana Airlines
China is the latest addition to the list of countries that are ok with the merger. Korean Air's merger with Asiana Airlines cleared another hurdle, with China's antitrust regulator giving its nod. Korean Air has bagged another approval for its acquisition of Asiana Airlines, with Chinese authorities saying yes to the merger after demanding some corrective measures. It has been nearly two years since Korean Air announced its plan to acquire Asiana Airlines. Currently, Korean Air and Asiana Airlines are the only two carriers flying between London Heathrow and Seoul Incheon.
Published : 2 years ago by Gaurav Joshi in Travel
Korean Air's merger with Asiana Airlines cleared another hurdle, with China's antitrust regulator giving its nod. Several markets where these two airlines serve are reviewing the proposed merger to see how it would affect competition. Many countries have already given the green signal to the deal, but some key markets, such as the US, Japan, and the EU, are yet to give their decision.
Korean Air has bagged another approval for its acquisition of Asiana Airlines, with Chinese authorities saying yes to the merger after demanding some corrective measures.
According to reports, the Ministry of Commerce of the People's Republic of China raised questions about the competition on nine air routes between the two countries, including Incheon to Tianjin, Beijing, Shanghai, and Changsha.
But Korean Air's reply to these questions seems to have satisfied China, with one of the measures including slot transfer in case other carriers want to deploy aircraft on these routes.
These developments come months after Australia gave its approval to the merger. The entry of Qantas and Jetstar on the Sydney-Seoul route has given the Australian authorities confidence that passengers are likely to get competitive fares and services on flights between the two countries.
US, UK, Japan, and the EU are still reviewing
The merger has received approvals from several countries, including Australia, South Korea, Singapore, Vietnam, Thailand, Turkey, Taiwan, Malaysia, China, and the Philippines.
It has been nearly two years since Korean Air announced its plan to acquire Asiana Airlines. But it is awaiting approvals from some of its biggest markets, including the US and EU. Earlier this year, Cho Won-tae, chairman of Hanjin Group, the parent company of Korean Air, tried explaining to the US authorities that the deal is actually in their interest.
But some are taking their time to review the proposition before coming to a conclusion. The UK government, for instance, has raised concerns over the merger. Currently, Korean Air and Asiana Airlines are the only two carriers flying between London Heathrow and Seoul Incheon. In the absence of any other carriers on the route, the UK is concerned that a single airline could dictate unfair prices or offer lower quality of service.
Competition from carriers offering the connection with a stopover, such as Emirates, Turkish Airlines, and Lufthansa, was found to be "much weaker options" for customers, according to the investigation by the Competition and Markets Authority (CMA).
While Korean Air has submitted remedies, the UK will take some more opinions before giving its decision.
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Topics: Aviation, China, Airlines, Korean, Korean Air