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Transport
ministry approves Korean Air's integration with Asiana Airlines
The
Korea Times - Korea's transport ministry on Thursday approved Korean Air Co.'s
integration with Asiana Airlines Inc., paving the way for the launch of a
combined entity in December.
The
Ministry of Land, Infrastructure and Transport made the decision after Korean
Air and Asiana Airlines applied for approval following the signing of an
integration agreement last month.
In
November 2020, Korean Air signed a deal to acquire a controlling stake in
Asiana Airlines, aiming to form the world's 10th-largest airline by fleet size.
Asiana Airlines is currently being operated as a Korean Air subsidiary.
The
transport ministry said its advisory panel, composed of aviation, legal and
accounting experts, conducted a thorough review of the application and
concluded that the merger meets the legal requirements.
The
approval, however, was granted on the condition that Korean Air guarantees
aviation safety and consumer convenience.
The
new entity will officially launch on Dec. 17.
"The
ministry will thoroughly oversee the integration to ensure aviation safety and
consumer convenience are not undermined, given the significant impact the
merger between the country's largest and second-largest air carriers will have
on the overall aviation market," a ministry official said.
