Brussels, 20 February 2023
The European Commission has opened an in-depth investigation to assess, under the EU Merger Regulation, the proposed acquisition of Asiana by Korean Air.
The preliminary investigation indicates that the companies are strong and close competitors in the provision of passenger and cargo air transport services between the European Economic Area (‘EEA’) and South Korea. In particular, the Commission found that the transaction: (i) could reduce competition in the provision of passenger transport services on four routes between South Korea and the EEA (ii) could eliminate potential competition in passenger transport services between the EEA and South Korea, (iii) could reduce competition in the provision of cargo transport services between Europe and South Korea. The Commission will therefore now carry out an in-depth investigation into the effects of the transaction to determine whether its initial competition concerns are confirmed.
Margrethe Vestager, Executive Vice-President in charge of competition policy, said:
“Korean Air and Asiana are close competitors and the two leading airlines that transport passengers and cargo between Europe and South Korea. With our in-depth investigation, we will ensure that the acquisition of Asiana by Korean Air does not impede competition and will not lead to higher prices, less capacity or lower quality for passengers and cargo air transport services.”
A press release is available online.
Source – EU Commission