Korean Air and Asiana Airlines merger

Asiana Airlines shareholders have approved a merger with Korean Air, concluding a nearly six-year acquisition process. The deal, valued at 1.8 trillion won ($1.6 billion), is expected to create the world’s 10th-largest airline by fleet size. The combined entity will operate under the name Korean Air, with the Asiana Airlines name being retired.

The formal merger is scheduled for December 17. To improve operational efficiency, the merged entity plans to redistribute flight slots and adjust departure times to reduce overlap on similar routes. The integration also aims to strengthen Incheon International Airport’s position as a global transit hub by optimizing connection schedules.

Regarding consumer interests, Korean Air stated that unilateral fare increases are unlikely due to competition and Fair Trade Commission regulations. A key remaining variable is the integration of mileage programs. Korean Air has proposed a plan to the Fair Trade Commission where Asiana mileage earned through flights can be converted to Korean Air SkyPass at a 1:1 ratio, while partner mileage would convert at a 0.82:1 ratio. This plan awaits regulatory approval.