Korean Air announced that it has officially completed its long-awaited acquisition of rival Asiana Airlines, creating one of the largest airline groups in Asia. The $1.3 billion (1.8 trillion won) deal, which had been in the works for over four years, was initially aimed at rescuing Asiana, a carrier burdened by heavy debt and struggling with a sharp decline in demand during the COVID-19 pandemic.
The acquisition, which saw Korean Air take a 63.88% stake in Asiana, was delayed several times due to competition concerns. To address these, Korean Air had to make several significant concessions, such as relinquishing certain flight routes to competitors and selling Asiana’s cargo operations. Despite these hurdles, the merger was finalised, although it took three years longer than initially expected.
For the time being, Asiana will operate as a subsidiary of Korean Air for up to two years before fully integrating into the larger airline. Once integration is complete, the newly merged airline will retain the Korean Air name but will adopt a new branding.
Korean Air’s plans also include the creation of a single low-cost carrier, which will further streamline operations. The integration strategy will involve adjusting flight schedules to avoid overlaps, introducing new routes, and making additional investments in safety.
Additionally, Korean Air has stated it will submit a proposal to merge the frequent flyer programmes of both airlines to the Korea Fair Trade Commission by June 2025 for approval.