Korean Air gets EU antitrust warning over $1.4 billion Asiana deal

Korean Air Lines Co. was handed a warning from European Union regulators that its plan to acquire smaller South Korean rival Asiana Airlines Inc. for 1.8 trillion won ($1.4 billion) would harm competition unless the firms allay antitrust concerns. 

In a so-called statement of objections announced on Wednesday, the European Commission cited likely problems on routes between South Korea and France, Germany, Italy and Spain. The commission also said the buyout could distort the market for cargo transport services between South Korea and Europe.

Both Korean Air and Asiana have been invited to request talks with the EU’s merger officials in order to chart a compromise on the deal. The EU has until Aug. 3 to come to a final decision.

Korean Air said in an emailed statement it’s “cooperating closely” with the commission to address all potential concerns.