Official Launch Is Set for on December 17 After Final Board Approval
Korean Air B787-10 (Korean Air)
Korean Air has completed its acquisition of Asiana Airlines and will officially launch as a mega carrier set to lead the global aviation market on December 17. With the two-carrier national airline system converting to a single full-service carrier (FSC) platform for the first time in 38 years, South Korea’s aviation industry network competitiveness is expected to rise to an entirely new level.
According to the aviation industry, Korean Air and Asiana Airlines each held regular board meetings and gave final approval to the merger agreement. This marks the culmination of approximately 5 years and 6 months since the two carriers first set the integration process in motion by signing a new share subscription agreement in November 2020. The merger ratio was set at 0.2736432 Asiana Airlines shares per one Korean Air share, and Korean Air will comprehensively succeed to all of Asiana’s assets, liabilities, and employees.
The merger is regarded as a singular achievement in the history of South Korean corporate restructuring, in that it has perfectly demonstrated financial soundness. In the course of the acquisition, Korean Air repaid in full a total of 3.6 trillion won (approximately $2.67 billion) in policy funds that had been injected to defend Asiana Airlines’ liquidity. By resolving its debt through its own operating surplus without relying on public support, the company has secured the trust of the market. In this process, the carrier also completed prerequisite tasks to allay monopoly concerns, including the separate divestiture of its cargo aircraft division.
The newly integrated Korean Air, upon its official launch, will emerge as a mega carrier equipped with more than 230 aircraft, approximately 28,000 employees, and assets of approximately 40 trillion won (approximately $29.63 billion). This is of a scale that places it among the world’s top 10 international carriers, and it is projected to serve as a milestone marking South Korea’s rise as a major international hub nation on par with Singapore and Hong Kong.
Korean Air is making large-scale investments to secure a global-standard safe operations infrastructure befitting its mega carrier status. The company has remodeled the Operations Control Center (OCC) and cabin training center at its headquarters, and has completed systems unification by standardizing flight crew training programs across both airlines. In addition, the carrier has firmly consolidated its aviation maintenance capabilities by securing a long-term maintenance outsourcing contract with GE, a world-renowned engine manufacturer.
With five Hanjin Group-affiliated airlines now consolidated at Terminal 2 of Incheon International Airport, analysts note that shortened transit routes have secured hub competitiveness at the highest level in East Asia. Alongside the emergence of this giant FSC, a realignment of the short- and medium-haul aviation ecosystem will also unfold. Korean Air’s strategy is to launch a low-cost carrier (LCC) integrating Jin Air, Air Busan, and Air Seoul in Q1 2027, maximizing synergies at the group level.
An aviation industry official said, “While some practical tasks remain, including the review of mileage revision proposals, the emergence of a clean mega carrier that has fully settled its policy funds is highly significant.” The official added, “With a powerful network connecting 120 cities around the world being established, this merger will serve as a decisive watershed in elevating the nation’s economic and trade capabilities.”
Jung Suk-yee
댓글
0