Korean Air Lines Co. sealed its acquisition of rival Asiana Airlines Inc. through an 800 billion won ($615 million) payment, marking the final step in South Korea’s largest aviation deal that required approvals from regulators across four continents.
The transaction gives Korean Air a 63.88% controlling stake in Asiana through newly issued shares, creating Asia’s fourth-largest carrier. The merger follows a complex regulatory process that involved satisfying conditions from 14 different jurisdictions, including recent approvals from Japan, the European Union and the U.S.
The integration process is expected to take two years, with Korean Air pledging to maintain current employment levels while optimizing overlapping routes. The carrier said it plans to reassign staff from duplicated functions rather than cut jobs, projecting workforce growth through business expansion.
As part of the merger conditions, Korean Air will transfer some European routes to budget carrier T’way Air, while Air Incheon is set to acquire Asiana’s cargo operations. The combined entity aims to strengthen Incheon Airport’s position as a regional hub.
The deal represents the culmination of negotiations that began in November 2020, when Korean Air announced plans to acquire its struggling domestic rival. Asiana shareholders will meet in January to appoint new board members nominated by Korean Air.
The combined frequent flyer program framework will be submitted to Korean regulators by June 2025.
