Key facts
- South Korea's Ministry of Land, Infrastructure and Transport has approved the integration of Korean Air and Asiana Airlines.
- The merger aims to create the world's 10th-largest airline by fleet size.
- The combined entity is scheduled to officially launch on December 17.
- The approval was granted with conditions to guarantee aviation safety and consumer convenience.
South Korea's Ministry of Land, Infrastructure and Transport has officially approved the integration of Korean Air Co. with Asiana Airlines Inc. The decision, made on Thursday, paves the way for the formation of a combined airline entity, which is slated to officially launch on December 17.
Korean Air initially signed a deal to acquire a controlling stake in Asiana Airlines in November 2020, with the goal of establishing the world's 10th-largest airline based on fleet size. Asiana Airlines has been operating as a subsidiary of Korean Air since the agreement.
The transport ministry's advisory panel, comprising experts in aviation, law, and accounting, conducted a comprehensive review of the application and determined that the merger meets the necessary legal requirements. However, the approval comes with stipulations that Korean Air must guarantee aviation safety and consumer convenience throughout the integration process.
A ministry official stated that the government will closely monitor the integration to ensure that aviation safety and consumer interests are not compromised, acknowledging the significant impact the merger of the country's two largest carriers will have on the broader aviation market.