
The acquisition deal between Korean Air and Asiana Airlines is at risk due to concerns from the U.S. and European Union regarding reduced competition on specific cargo routes.
The US Department of Justice is exploring potential legal action to prevent a merger, citing concerns over the combined airline’s potential domination of passenger and cargo routes to the US that are currently competitive. This information was reported by Politico.
Both airlines provide service to San Francisco, Los Angeles, Seattle, New York City, and Honolulu.
Korean Air owns 23 freighters, which includes seven Boeing 747-8 and twelve 777 aircraft. It is the fifth-largest cargo carrier in the world based on volume, but the third when FedEx and UPS are not considered. Asiana has ten Boeing 747 freighters and one 767, according to Flightradar24.
Related: EU Warns Korean Air Over $1.4 Billion Asiana Deal
According to three sources familiar with the discussions cited by Politico, the Biden administration is worried that the merger would give one company too much power over the transportation of crucial goods such as microchips, potentially damaging the resiliency of the supply chain.
The European Union’s antitrust regulator has expressed concerns over Korean Air’s potential acquisition of South Korea’s second-largest airline, citing potential reductions in passenger and cargo competition between Europe and South Korea. Korean Air had agreed to take a majority stake in Asiana in November 2020 following encouragement from the South Korean government.
Featured News
Intel Challenges €376 Million EU Fine in Ongoing Antitrust Dispute
May 19, 2025 by
CPI
Red Bull Challenges EU Commission Over Lengthy Antitrust Inspection
May 19, 2025 by
CPI
Live Nation Under Criminal Antitrust Investigation Over Pandemic-Era Refund Policies
May 19, 2025 by
CPI
BCLP Strengthens Healthcare and Antitrust Litigation Practice
May 19, 2025 by
CPI
Italy Fines AI Chatbot Maker Replika €5 Million Over Privacy Violations
May 19, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Healthcare Antitrust
May 14, 2025 by
CPI
Healthcare & Antitrust: What to Expect in the New Trump Administration
May 14, 2025 by
Nana Wilberforce, John W O'Toole & Sarah Pugh
Patent Gaming and Disparagement: Commission Fines Teva For Improperly Protecting Its Blockbuster Medicine
May 14, 2025 by
Blaž Višnar, Boris Andrejaš, Apostolos Baltzopoulos, Rieke Kaup, Laura Nistor & Gianluca Vassallo
Strategic Alliances in the Pharma Sector: An EU Competition Law Perspective
May 14, 2025 by
Christian Ritz & Benedikt Weiss
Monopsony Power in the Hospital Labor Market
May 14, 2025 by
Kevin E. Pflum & Christian Salas