Korean Air Lines Co., Ltd. (KOSE:A003490, South Korea?s largest carrier, has received conditional approval from the EU to merge with Asiana Airlines, Inc. (KOSE:A020560), another S. Korean company, with the sale of Asiana?s cargo units and route adjustments as key conditions, leaving the United States as the final approver among 14 nations. EU?s approval comes with certain conditions to eliminate monopolies, such as the requirement to sell Asiana Airlines? cargo units.

The approval, though conditional, essentially means that the merger has been granted approval. U.S. is the only country among the 14 nations that still needs to approve the merger. Korean Air has recently announced that it has received conditional approval from the European Commission (EC) for the corporate merger related to the acquisition of Asiana Airlines.

However, in order to obtain final approval, Korean Air must sell Asiana Airlines? cargo units and yield its rights for aircraft takeoffs and landings in four European cities? routes to its competitors.

It has been reported that the EU had the strictest evaluation of the merger by showing concerns over the monopoly issues that this merger could bring. Korean Air had submitted a notification of the proposed merger in Jan. 2023, and the European Commission (EC) was supposed to approve it by July 5 of the same year.

However, the EC extended the review period twice, citing concerns about potential monopoly issues, and required Korean Air to take additional measures. Regarding this, Korean Air presented proposals to the European Commission to address concerns over the company?s acquisition of Asiana Airlines. The proposals include the sale of Asiana?s cargo business and the transfer of some European routes to T?way Air, a S. Korean Low-Cost Carrier (LCC).

T?way Air is set to launch flights on four overlapping routes, including the Incheon-Paris route, in the second half of this year. It is expected that Jeju Air, another S. Korean LCC with significant financial resources, will purchase Asiana?s cargo business. Korean Air has stated that it plans to expedite discussions with the US side and conclude the merger review process, pending approval from the EU competition authorities.