Brussels, 28 November 2024
The European Commission has approved, under the EU Merger Regulation, Air Incheon as a suitable purchaser for the divestment business offered by Korean Air Lines Co., Ltd (‘Korean Air‘) in order to acquire control over Asiana Airlines Inc. (‘Asiana‘). The approval of a suitable remedy taker is a condition for Korean Air and Asiana to implement the transaction.
On 13 February 2024, the Commission approved the proposed acquisition of Asiana by Korean Air, conditional upon full compliance with a remedy package offered by Korean Air. As a part of the commitments, Korean Air committed to divest Asiana’s global cargo freighter business. The divestment includes freighter aircraft, slots, traffic rights, flight crew, and other employees, as well as customer cargo contracts, among others.
With today’s decision, the Commission has approved Air Incheon as the purchaser of the divestment business offered by Korean Air. Air Incheon, established in 2012, is the only South Korean airline entirely dedicated to freighter cargo transport.
The Commission found that Air Incheon fulfilled the relevant criteria of: (i) being independent from Korean Air and Asiana; (ii) having the financial resources, proven expertise and incentives to maintain and develop the divestment business as a viable and active competitive force in competition with the parties and other competitors; (iii) being a South Korean airline with an existing Air Operator’s Certificate and a hub at Incheon airport; and (iv) the divestment not raising at first sight competition concerns or risks in delaying the implementation of the commitments.
More information will be available on the Commission’s competition website, in the public case register under the case number M.10149.