News
Korean Air-Asiana Airlines merger finalized
December 12th 2024
As of December 12, Asiana Airlines is a subsidiary of Korean Air (KAL). Read More » Closing the merger deal has taken four years as KAL was required to win approval from 14 jurisdictions worldwide before it could take majority ownership of the cash strapped carrier. Earlier this week, KAL made the final payment, of 800 billion won ($558.58 million), for the purchase of a controlling stake in South Korea’s former second international carrier. Following the merger, KAL will be the world’s 11th largest airline by annual passenger volumes operating 238 aircraft and employing a staff of 27,000. KAL will manage Asiana Airlines as a separate entity for the next two years to allow the new entity time to align corporate cultures and merge their mileage programs. Local media reports KAL will appoint a new head of Asiana Airlines in January and that LCCs, Air Busan and Air Seoul, will be absorbed in KAL LCC, Jin Air. Analysts believe the LCC consolidation will be a direct threat to Jeju Air, South Korea’s largest LCC by market capitalization. KAL also must submit its plan for merging the mileage programs of the two carriers to the country’s Fair Trade Commission (FTC) by mid-2025.
