Korean Air Completes Acquisition of Asiana
Deal News | Dec 12, 2024 | EIN
Korean Air has finalized its acquisition of rival Asiana Airlines, concluding a deal that has been four years in the making. The purchase, valued at 1.8 trillion won (approximately RM5.8 billion), faced numerous delays due to competition concerns and the necessity to appease regulatory bodies worldwide. This acquisition positions Korean Air as the world's 12th-largest airline by international capacity, capturing over half of South Korea's passenger capacity. The move strengthens its competitive presence in the Asia-Pacific region, aligning with China's leading state-owned airlines. Asiana, now a subsidiary, will eventually integrate into the Korean Air brand over two years. The merger emphasizes strategic expansion, including the formation of a single low-cost carrier and the merging of frequent flyer programs, with a focus on maximizing the potential of South Korea's Incheon International Airport.
Sectors
- Aviation
- Mergers & Acquisitions
Geography
- South Korea – The primary location of both Korean Air and Asiana Airlines, as well as the focal point of the merger activity discussed in the article.
- Asia-Pacific – This region is relevant due to Korean Air's strategic positioning and growth objectives in the Asia-Pacific aviation market.
Industry
- Aviation – This industry classification is relevant because the article is primarily about the merger between two major airline companies, Korean Air and Asiana Airlines.
- Mergers & Acquisitions – The article discusses the completion of a significant acquisition in the airline sector, highlighting industry consolidation.
Financials
- 1.8 trillion won – The total value of the acquisition deal between Korean Air and Asiana Airlines.
- RM5.8 billion – The equivalent value of the acquisition deal in Malaysian ringgit.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Korean Air | Bidding Company | Company | South Korea's largest carrier, which has acquired Asiana Airlines. |
| Asiana Airlines | Target Company | Company | South Korea's No. 2 carrier, acquired by Korean Air. |
| Korea Fair Trade Commission | Government | Government | Korean regulatory body involved in reviewing the merger's frequent flyer program integration. |
| Cirium | Data Provider | Other | Provided airline data for analysis of the merger's impact on international capacity ranking. |
| OAG | Data Provider | Other | Offered analytical data concerning airline capacity post-merger. |