The proposed merger between Korean Air and Asiana Airlines is under consideration by the US Department of Justice (DOJ), which is debating whether or not to file a lawsuit.
Politico said that sources familiar with the situation said the DOJ is concerned that the merger could hurt competition on passenger and freight flights between the US and South Korea. The announcement follows the European Commission’s (EC) judgment, which found that the merger of Korean Air and Asiana Airlines would “restrict competition in the markets for passenger and cargo air transport services between the European Economic Area (‘EEA’) and South Korea.”
The Commission stated that, specifically, it had come to the conclusion that there would be less competition on passenger flights between South Korea and France, Germany, Italy, and Spain as well as on cargo flights between all of Europe and South Korea as a result of its extensive examination. On May 17, 2023, the European Commission (EC) made its decision public and sent a statement of concerns to Korean Air, which had first proposed the acquisition of Asiana Airlines in November 2020.
Korean Air’s Chief Executive Officer (CEO), Walter Cho, has previously stated that the airline intends to complete the transaction at some point in 2023. Following the submission of corrective actions by Korean Air and Asiana Airlines, the United Kingdom’s Competition Market Authority (CMA), the nation’s competition regulator, authorized the merger.
In order for Virgin Atlantic to run services between London, the United Kingdom, and Seoul, South Korea, these measures included giving up slots at London Heathrow Airport (LHR) and Seoul Incheon International Airport (ICN). On March 2, 2023, Virgin Atlantic joined the SkyTeam Alliance, making it simpler for it to enter into code-sharing arrangements with other members of the airline alliance, such as Korean Air.
