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South Korea to monitor airline competitiveness following approval of Korean Air-Asiana Airlines merger
December 13th 2024
South Korea’s government will work to enhance competitiveness in the domestic aviation industry and minimize potential monopolistic harm, an initiative being put in place following the merger of Korean Air (KAL) and Asiana Airlines, Yonhap Agency reports. Read More » South Korea’s ministry of transport will support the implementation and supervision of corrective measures mandated by the Fair Trade Commission (FTC) as part of the merger’s approval conditions. The FTC will establish a supervisory committee by next March to monitor KAL’s compliance with the approval terms. Punitive measures will apply for big fare increases, unfair mileage practices and lapses in service quality. The government will support LCCs to prevent the merger from weakening their market positions by offering more traffic rights on medium and long-haul routes to Europe and within Asia. Additionally, the government will oversee the smooth transfer of the Asiana Airlines cargo unit to Air Incheon to avoid disruptions in the national logistics network. Air Incheon expects to complete the acquisition process in first-half 2025.
