Korean Air to offer to sell Asiana's cargo business, routes to satisfy EU regulators -sources (updated)

ASIANA AIRLINES

17/10/2023 12:09

(Adds Korean Air could not be immediately reached outside of
office hours, details)
    By Foo Yun Chee
       BRUSSELS, Oct 17 (Reuters) - South Korea's biggest
carrier, Korean Air Lines  003490.KS , will offer to sell Asiana
Airlines'  020560.KS  air cargo business and divest routes to
four EU cities in a bid to gain EU antitrust approval for
acquiring its rival, two people familiar with the matter said.
    The airline sector has seen a wave of consolidation
recently, with Lufthansa  LHAG.DE  acquiring a 41% stake in
Italy's ITA Airways and British Airways and Iberia owner IAG
 ICAG.L  buying the remaining 80% of Spanish carrier Air Europa
it does not already own.
    Competition watchdogs have demanded remedies tougher than
just divesting airport slots to rivals, in some cases making
sure the buyers can operate the acquired slots as efficiently as
the seller. 
    Korean Air is now in talks with several rivals and will
likely clinch a deal with a Korean air cargo competitor to buy
the assets, one of the people said on Tuesday.
    The carrier plans to submit the package together with the
remedy taker to the European Commission by the end of October
although the timing could still slip, the person said.
    Korean Air could not be immediately reached for comment
outside office hours.
    The EU antitrust enforcer has previously said the deal could
reduce competition in passenger and air cargo transport between
Europe and South Korea. It paused the clock on its investigation
into the acquisition on June 23 while waiting for requested
information
    The UK competition agency in March said it would not open a
full-scale investigation into the deal.

 (Reporting by Foo Yun Chee, additional reporting by Heekyong
Yang in Seoul; Editing by Kirsten Donovan)
 ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters
Messaging: foo.yunchee.thomsonreuters.com@reuters.net))