DALLAS — Korean Air (KE) has today completed its acquisition of Asiana Airlines (OZ), four years after announcing its decision during the first year of the pandemic.
Korea’s aviation industry marks a strategic milestone with this acquisition, as the merger of the country's two full-fledged carriers aims to strengthen national aviation industry competitiveness, enhance Incheon International Airport’s (ICN) hub capabilities, and expand global network reach.
The Korean flag carrier acquired 131,578,947 newly issued shares of OZ, representing a 63.88% ownership stake, making OZ a KE subsidiary. Korean Air paid KRW 800 billion to OZ on December 11, concluding the share purchase transaction. This brings the total investment to KRW 1.5 trillion, including the previously paid deposit of KRW 300 billion and interim payment of KRW 400 billion.
At the start of November 2024, the European Union approved KE US$1.1 billion takeover of OZ. This clears regulatory hurdles for the four-year deal, creating the world’s seventh-largest carrier. Korean Air received the green light after fulfilling EU conditions. It gained approval from 13 out of 14 countries, except for a pending review by the United States.
The U.S. Department of Justice typically considers legal action only if concerned about a merger’s potential monopoly. It did not launched any, which was a positive sign.
The EU’s approval came nine months after the European Commission granted conditional approval in February. KE sold OZ's cargo business and transferred four overlapping European passenger routes to a domestic low-cost carrier, T’way Air.
A Two-year Integration
Korean Air aims to complete the integration with OZ within two years. The strategy includes network optimization, service expansion, and enhanced safety investments.
The airline says the integration will proceed without workforce restructuring. The combined organization projects natural staff growth through business expansion, reassigning employees in overlapping functions.
The integrated frequent flyer program framework will be submitted to the Korea Fair Trade Commission by June 2025. Customers will receive details after regulatory review.
Finally, OZ will hold an extraordinary general meeting on January 16, 2025, to appoint new board directors nominated by KE.
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February 2025
