HomeAir LineEurope approves the Korean Air-Asiana merger and protects flights with El Prat

Europe approves the Korean Air-Asiana merger and protects flights with El Prat

The European Commission has approved one of the major mergers in the Asian market: the acquisition of Asiana by Korean Air. After studying the possible drawbacks regarding competition, especially on the routes between Seoul and Barcelona, ​​Paris, Frankfurt and Rome, the Community Executive has not raised any objections. Although with the conditions of the sale of Asiana’s cargo business and that Korean Air makes available to its rival T’Way “the necessary assets so that it can start flying on the four overlapping routes.”

Korean AirSouth Korea’s leading airline, announced three years ago its plans to acquire Asian for approximately 1.8 trillion won (1,625 million euros), an operation that then aspired to create the tenth largest airline in the world and that it was pending approval by the market regulatory bodies of the European Union, the United States and Japan, among other countries.

The European Commission has today notified its approval, with some conditions, which are intended to correct possible inconveniences to competition.

Specifically, the European Competition Department considered that the merger could have negative effects on the freight transport market between Europe and South Korea and on the passenger transport sector between Seoul and some EU destinations such as Barcelona, Paris, Frankfurt and Rome.

To resolve the Commission’s doubts, Korean Air has committed to providing its rival airline T’Way with access to assets that allow it to offer flights on these four routes. These assets include flight slots, flight rights and access to the necessary aircraft and Korean Air has promised not to complete the merger with Asiana until T’Way begins operating these routes.

On the other hand, Asiana Airlines will sell its freight brancha business that includes freight aircraft, flight slots, flight personnel and other employees and customer order contracts, among others.

Korean Air has committed to providing its rival T’ Way with access to slots and flight rights as well as the planes necessary to operate routes between Seoul and Europe.

The Community Executive considers that these corrections “address all the competition problems” that it had identified, a conclusion it reached after consulting both consumers and rival airlines about the commitments offered by the two companies involved in the merger.

Since April of last year, Korean Air operates daily direct flights from Spain to South Korea. Specifically, from Madrid Barajas and Seoul Incheon, with three weekly frequencies, on Tuesdays, Thursdays and Sundays. Likewise, it increased the frequencies on its Barcelona-Seoul route to four weekly, with an additional one on Saturdays.

Related news:

-Korean Air will operate daily direct flights with Spain

-What is the Korean tourist like who has more and more interest in Spain?

-Madrid prepares to receive Asian tourists

Source: Hosteltur



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