Korean Air Lines Co., South Korea’s leading full-service airline, anticipates securing full approval from the US government by the end of October to proceed with its merger with Asiana Airlines Inc., nearly four years after announcing the 1.8-trillion-won ($1.3 billion) deal. This was disclosed by Korean Air Chairman and CEO Cho Won-tae in a recent interview with Bloomberg.
Cho expressed confidence that no additional concessions would be necessary beyond the divestiture of Asiana’s cargo unit and several long-haul passenger routes. These divestitures are part of Korean Air’s efforts to address monopoly concerns raised by the European Commission (EC), which issued preliminary objections last year.
“We have done everything the US and the EU have requested us to do,” Cho told Bloomberg. The US is the final of 14 jurisdictions to respond to the merger proposal.
In addition to the merger with Asiana, Korean Air is considering the consolidation of three local budget carriers: its subsidiary Jin Air, and Asiana’s Air Busan Co. and Air Seoul. This combined entity would boast a fleet of 64 aircraft, enhancing its competitive edge in the budget airline sector.
Korean Air is also planning a significant fleet expansion. Cho mentioned that the airline is leaning toward ordering up to 30 Boeing 787 Dreamliners, following a recent order of 33 Airbus A350s in March. Last year, Korean Air added 20 A321neos to its fleet and is also considering Boeing’s 777X for new freighter orders.
“Boeing is a strong company. I believe in Boeing’s management,” Cho said, expressing confidence in the manufacturer’s ability to overcome recent safety and quality control issues. He plans to grow Korean Air’s fleet to up to 100 planes within the next five years.
This merger and fleet expansion underscore Korean Air’s strategic efforts to bolster its market position and operational capacity, setting the stage for significant growth in the global aviation industry.
