EU Watchdogs Open Antitrust Probe Into a Korean Air-Asian Deal

The European Union has opened an additional four-month investigation into the Korean Air Lines acquisition of Asiana Airlines, citing concerns over possibly reduced competition.

The commission said the deal could reduce competition in the passenger and air cargo transport services on four routes between South Korea and the EEA (European Economic Area) as a reason for opening the in-depth investigation. It specifically cited the two companies’ positions as the country’s largest and second-largest airlines.

“The transaction could reduce competition in the provision of passenger transport services on four routes between South Korea and the EEA (European Economic Area),” the European Union competition enforcer said in a statement.

Read more: South Korean Watchdog OKs Korean Air-Asiana Tie-Up With Conditions

“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.” Said Margrethe Vestager, Executive Vice-President in charge of competition policy.

Korean Air, headquartered in South Korea, is a full-service carrier with domestic and international operations in passenger and cargo air transport. It operates a hub-and-spoke network with its principal hub at Incheon airport in Seoul. Korean Air is a member of the SkyTeam alliance.

Asiana, headquartered in South Korea, is a full-service carrier with domestic and international operations in passenger and cargo air transport. Asiana is a member of the Star Alliance.