South Korea’s national carrier Korean Air has completed its acquisition of rival privately held Asiana Airlines, which will now be a subsidiary of Korean Air. The US$1.05 billion deal includes a 63.88% stake in Asiana. Full integration of the two companies, including the unification of their route networks and loyalty programs, will take about two years.
To secure antitrust approval, Korean Air made significant concessions, including selling off Asiana’s cargo unit and supporting other carriers such as T’Way Air and Air Premia on key routes. In addition, Asiana’s low-cost subsidiaries Air Seoul and Air Busan will be absorbed into Korean Air’s low-cost unit, Jin Air.
Korean Air officials stress that the merger will not result in any layoffs. Instead, the company hopes to expand its business by providing employees with overlapping functions with new positions within the organization. Announced back in 2020, the takeover marks the merger of two of South Korea’s largest airlines.