Korean Air has finalised the acquisition of a majority stake in Asiana Airlines – finally completing a deal which was first announced in November 2020.
The transaction sees Korean Air investing 1.5 trillion Korean won (US$1.05 billion), to acquire a 63.88 per cent shareholding in Asiana, which now becomes a subsidiary of Korean Air.
The European Union gave its final approval to the merger last month, which left the US Department of Justice as the last governmental body to grant approval.
The DOJ did not raise any objections to the merger by the deadline of 11 December allowing the acquisition to finally proceed.
Korean plans to complete the integration with Asiana within two years, which includes network optimisation through diversified flight schedules on overlapping routes, service expansion to new destinations and enhanced safety investments.
The airline added in a statement that the merger will proceed without any workforce restructuring.
Korean Air plans to submit plans for an integrated frequent-flyer programme to the Korea Fair Trade Commission by June 2025.