Korean Air wins EU antitrust approval for Asiana deal

Trinity Airways Co

13/02/2024 10:45

By Foo Yun Chee
       BRUSSELS, Feb 13 (Reuters) - Korean Air  003490.KS  won
EU antitrust approval on Tuesday to buy Asiana Airlines
 020560.KS  after the companies agreed to sell the latter's
cargo unit and divest routes to four European cities to a rival.
    Korean Air, South Korea's biggest carrier, announced in late
2020 of its 1.8-trillion-won ($1.35 billion) bid to become the
top shareholder of indebted Asiana.
    The airline sector has seen a wave of consolidation in
recent months, with Lufthansa  LHAG.DE  seeking a 41% stake in
Italy's ITA Airways and British Airways and Iberia owner IAG's
 ICAG.L  bid for the remaining 80% of Spanish carrier Air Europa
it does not already own.
    The European Commission said remedies offered by the two
Korean carriers addressed competition concerns, confirming a
Reuters story. The concessions could set the benchmark for other
airline mergers.
    The EU competition enforcer said Korean Air will divest
Asiana's global cargo freighter business and also offer slots,
traffic rights and aircraft to Korean budget rival T'Way
 091810.KS  for routes to Barcelona, Paris, Rome and Frankfurt.
    The deal can only be implemented once the Commission has
approved the buyer for the cargo business and also conditional
on T'Way starting operations on the four routes. 
    "These remedies effectively address our concerns, and will
ensure fair competition and consumer choice in this vital
sector," EU antitrust chief Margrethe Vestager said in a
statement.
    ($1 = 1,330.5100 won)

 (Reporting by Foo Yun Chee)
 ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters
Messaging: foo.yunchee.thomsonreuters.com@reuters.net))