The United States Department of Justice (DOJ) is expected to announce a decision imminently concerning the proposed merger between Korean Air (KE, Seoul Incheon) and Asiana Airlines (OZ, Seoul Incheon). The DOJ is the last of the major antitrust agencies to decide on whether the merger breaches competition norms.
The approval process for the merger “appears to be essentially complete,” a DOJ source told Seoul's Chosun Ilbo newspaper. The outlet was reporting on a November 19 meeting between South Korea’s ambassador to the US, Cho Hyun-dong, and DOJ antitrust chief Jonathan Kanter. Along with the Federal Trade Commission (FTC), Kanter's DOJ branch oversees and regulates competition issues in the US.
Korean Air has been attempting to close its merger with Asiana for four years. Earlier this year, it secured approval from the European Commission (EC) and Japan, subject to concessions from the two airlines including selling Asiana's cargo arm and facilitating the entry of a new operator on certain routes between South Korea and the European Union. This week, the EC said it was satisfied that Korean Air and Asiana had met the conditions set down.
The US is expected to require similar concessions, some of which Korean and Asiana have pre-planned for, such as helping Air Premia (YP, Seoul Incheon) increase its services to the US. According to industry sources, the US competition authorities are expected to make their decision known by the end of the month.
ch-aviation has contacted the DOJ for comment.
In June, Cho Won-tae, the chairman of Korean Air's parent entity Hanjin Group, said he was confident the merger would secure US approval.
