Korean Air offers fix to win EU nod for $1.4 billion Asiana deal

Korean Air Lines Co. has offered concessions to the European Union competition regulator as it seeks approval for its 1.8 trillion won ($1.4 billion) bid for smaller rival Asiana Airlines Inc. 

An update to the European Commission’s case page on Wednesday said the firms filed remedies on Nov. 3, without disclosing what the proposed fixes are. The Commission has set a deadline of Jan. 13 to decide if the deal should be cleared. 

Korean Air was earlier in discussions with EU regulators over a plan to sell part of Asiana’s cargo business as well as to enable entry for competitors on certain passenger routes between South Korea and Europe to appease their concerns.

The EU’s antitrust watchdog had warned that the deal could thwart competition on routes between South Korea and France, Germany, Italy and Spain, as well as distort competition on the market for cargo transport services between South Korea and the EU.

The proposed deal was announced in 2020 and was an attempt by Korean Air parent Hanjin Kal Corp. to stabilize South Korea’s aviation industry amid the coronavirus pandemic. Hanjin Kal said at the time it expected Korean Air to be ranked as one of the world’s top 10 airlines once the deal is completed.

The European Commission is also gearing up for further investigations in the airline industry, including a deal between Deutsche Lufthansa AG and Italy’s ITA Airways, as well as IAG SA’s €400 million purchase of Spanish airline Air Europa.