EU prolongs review of Korean Air-Asiana merger, requires more concessions

• Published date: 28 February 2023
• Publication title: The Korea Times

An unprecedented move by the European Union (EU) to conduct a second-stage review of Korean Air's takeover of Asiana Airlines will lead to a further delay in the ongoing process, according to industry officials, Monday.

The European Commission said the deal could affect passenger and air cargo transport services between the European Economic Area (EEA) and Korea, because the two airlines are strong and close competitors, adding that it needs more time to assess the effects of the takeover.

"The transaction could?reduce competition?in the provision of?passenger transport?services on?four routes?between South Korea and the EEA. On those routes, Korean Air and Asiana compete head-to-head, and in two of those routes, they are the only two companies offering direct services. Other airlines may be unlikely to exert sufficient competitive pressure on the merged entity," the commission said in a statement.

As of 2019, Korean Air and Asiana Airlines' market share is 100 percent in Barcelona, 75 percent in Rome, 68 percent in Frankfurt and 60 percent in Paris. As a result, Korean Air is expected to submit measures to ease its monopoly, including returning some route slots.

Specific figures have not been disclosed, but the combination of the two companies could reduce the share of European routes to 50 percent. Korean Air is said to be...