EU opening probe into merger between Korean Air and Asiana Airlines
EU antitrust regulators warned on Friday a bid by South Korea’s biggest carrier, Korean Air Lines, for second-place Asiana Airlines could hurt competition, as they opened a full-scale investigation of the deal.
Korean Air would become the top shareholder of indebted Asiana under the proposed acquisition, announced in late 2020, marking one of the first major deals in the aviation industry since the COVID-19 pandemic.
The European Commission said the deal could affect passenger and air cargo transport services between Europe and South Korea as the two airlines are strong and close competitors.
→ Avianca reiterates and details five proposals to support the rescue of Viva Air
“The transaction could reduce competition in the provision of passenger transport services on four routes between South Korea and the EEA (European Economic Area),” the European Union competition enforcer said in a statement.
The four routes are to Barcelona, Frankfurt, Paris and Rome, Reuters reported.
“Korean Air is confident that our merger will benefit our customers in the market, and will continue to communicate with the European Commission and submit our remedies to address their concerns,” the airline said in a statement on Saturday.
The EU watchdog will decide by July 5 whether to clear or block the deal. The deadline can be extended depending on whether the companies offer remedies to address the EU concerns.
Related Topics
Gol Launches Long-Haul Flights: Inaugurates Nonstop Service Between Rio de Janeiro and New York
Palm Beach Airport Officially Renamed in Honor of Donald Trump, Modifies FAA Code
JetBlue Announces Largest Flight Schedule in Its History at Fort Lauderdale
United Airlines Faces Class-Action Lawsuit Over Sale of “Window Seats” Lacking Windows
Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.