South Korea’s antitrust watchdog has approved low-cost airline Jeju Air’s takeover of the management of struggling Eastar Jet, officials said Thursday, April 23.
Early last month, Jeju Air signed a deal with Eastar Holdings, the largest shareholder of Eastar Jet, to acquire the airline for 54.5 billion won (US$45 million). The firm acquired 4,971,000 common shares for a 51.17% stake.
“The Fair Trade Commission conducted the review as promptly as possible, considering the circumstances of the airline industry suffering from the aftermath of the pandemic,” the KFTC stated.
As a result of the review, Eastar Jet was recognized as an “unrecoverable company” under the Fair Trade Act and was granted an exception to the restriction on competition.
From a competitive perspective, it was considered to be better to approve the tie-up to continue to use Easter Jet’s assets than to remove the airline, which is not possible to revive, the authorities said.
“Under these circumstances, it was considered to be difficult to repay outstanding debts amounting to 115.2 billion won at the end of March 2020, including aircraft lease fees, airport fees, air oil purchase costs and wages. Its tangible assets were only 45 billion won at the end of 2019,” the KFTC stated.
Full Content: Korea Herald
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI