After four years since its was first announced, the Korean Air and Asiana merger has been completed.
After four years since its was first announced, the Korean Air and Asiana merger has been completed.
The Seoul-based carrier stated on December 12, it acquired 131,578,947 newly issued shares of Asiana Airlines – the second biggest airline of South Korea – representing a 63.88% ownership stake. The acquisition of the shares now makes Asiana a subsidiary of Korean Air.
According to Korean Air, the airline concluded the share purchase transaction with a KRW 800 billion (~USD $558.8 million) payment to Asiana on December 11. Combined, the total investment through the third-party allotment capital increased to KRW 1.5 trillion (~USD $1.05 billion), including the previously paid deposit of KRW 300 billion (~USD $209.5 million) and interim payment of KRW 400 billion (~USD $279 million).
Korean Air states it plans to complete the integration with Asiana Airline within the next two year. The integration strategy includes network optimization through diversified flight schedules on overlapping routes, service expansion to new destinations, and enhanced safety investment.
The airline stated the integration will proceed without workforce restructuring. The combined organization projects natural staff growth through business expansion, with employees in overlapping functions being reassigned within the organization.
“The merger aims to strengthen national aviation industry competitiveness, enhance Incheon Airport's hub capabilities and expand global network reach,” Korean Air said in a statement.
Regarding the frequent flyer programs of both airlines, the integrated frequent flyer program framework will be submitted to the Korea Fair Trade Commission by June 2025. Program details will be communicated to customers following regulatory review.
Since its announcement in late 2020, Korean Air has secured the approvals for the merger from competition regulators in 14 countries - including South Korea, the United States, United Kingdom, Japan, China, and the European Commission (EU).
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