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EU Warns Korean Air Over $1.4 Billion Asiana Deal

 |  May 17, 2023

The EU expressed concerns on Wednesday regarding the potential impact of Korean Air’s acquisition of Asiana on the competition for routes between Europe and South Korea.

In late 2020, Korean Air announced its acquisition of Asiana for $1.6 billion amidst the global aviation industry’s disruption caused by the coronavirus pandemic, resulting in grounded planes.

The European Commission, which oversees anti-trust matters, issued a formal warning called a “statement of objections” after conducting a thorough investigation starting in February of this year.

Read more: European Regulator Further Delays Korean Air-Asiana Merger

The commission expressed concerns regarding the bid’s potential impact on competition for passenger transport services on routes between South Korea and France, Germany, Italy, and Spain, as well as cargo transport services between Europe and South Korea.

The commission pointed out that the merger of Korean Air and Asiana may lead to a reduction in customer options since both companies provide transportation services for passengers and cargo between Europe and South Korea.

The warning stated that the takeover may result in increased prices or decreased quality of services.

The EU regulator is required to reach a final decision by August 3 of this year.