EU Objects to Korean Air’s Bid to Buy Rival Asiana

Korean Air Lines’s proposed acquisition of rival Asiana may restrict competition in passenger and cargo air transport services between Europe and South Korea, EU antitrust regulators said on Wednesday.

The European Commission said it had sent a statement of objections outlining its concerns, confirming a Reuters story last week.

The deal, announced by Korean Air in late 2020, would see it become the biggest shareholder in indebted Asiana, the biggest shake-up in the country’s aviation industry in nearly three decades.

The EU competition enforcer said it had sought feedback from rival airlines, potential market entrants and customers on the potential impact of the deal.

“The transaction may reduce competition in the provision of passenger transport services on four routes between South Korea and France, Germany, Italy and Spain,” it said in a statement.

It said the deal may also reduce competition in the provision of cargo transport services between all of Europe and South Korea.

Korean Air said it would continue to discuss remedies with the Commission.

“Korean Air is confident that the proposed merger will benefit our customers in the market and will make every possible effort to secure the final approval of the merger,” the carrier said in a statement.

(Reporting by Foo Yun Chee; Editing by Kirsten Donovan)

This article was written by Foo Yun Chee from Reuters and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to legal@industrydive.com.