Korean Air has just received approval from the U.K.’s Competition and Markets Authority (CMA) for its merger with Asiana Airlines. However, the airline is still awaiting business competition approvals from the E.U., Japan, and the U.S. This is a significant step forward for Korean Air as the CMA’s approval is proof that the proposed remedies submitted by the airline have resolved competition restriction concerns.
Last year, on 28 November, the CMA accepted remedies submitted by Korean Air and stated that it would listen to market opinions before giving approval for the business combination. Later, on 26 January, the CMA informed the airline that it required more time to review the remedies and would extend its review until 23 March.
As part of the remediation effort, Korean Air has agreed to a cooperative partnership with Virgin Atlantic’s operation on the London Heathrow – Seoul Incheon route. This move is expected to increase competition and improve services between the two countries. Korean Air has committed to fully cooperating with all authorities to receive approvals at the earliest opportunity.
Since January 2021, Korean Air has reported its business combination to 14 competition authorities, with 11 countries, including the U.K., already approving the combination or concluding the review on the grounds that the business combination was not subject to review or report.
Although Korean Air still awaits approval from other major authorities, the CMA’s approval is a significant milestone in the airline’s journey towards completing its business combination with Asiana Airlines. With its proposed remedies addressing competition concerns, Korean Air is on track to achieve the necessary approvals and continue to grow its business.
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