Korean Air has successfully completed its acquisition of Asiana Airlines, concluding a process that began on November 16, 2020. On December 12, 2024, Korean Air acquired 131,578,947 newly issued shares of Asiana Airlines, securing a 63.88% ownership stake and officially making Asiana a subsidiary, thus strengthening Korean Air and Asiana Airlines as a major force in the industry.
The acquisition finalized with a payment of KRW 800 billion on December 11, 2024, completing the transaction. This amount, combined with a previous deposit of KRW 300 billion and an interim payment of KRW 400 billion, totals an investment of KRW 1.5 trillion through a third-party allotment capital increase.
Asiana will hold an extraordinary general meeting on January 16, 2025, to appoint new board directors nominated by Korean Air. This move represents a critical step in the integration process, which is expected to take two years to complete, marking a new era for both Korean Air and Asiana Airlines.
Integration and Future Plans
Korean Air has outlined a strategic integration plan that includes optimizing flight schedules on overlapping routes, introducing new destinations, and investing in safety enhancements. The merger aims to boost national aviation capabilities, strengthen Incheon Airport’s hub status, and expand the global network in ways that benefit both Korean Air and Asiana.
The combined organization will not implement workforce restructuring. Instead, employees in overlapping roles will be reassigned to accommodate business growth. The integration strategy also anticipates natural staff expansion driven by the broader operations of the merged entity.
An integrated frequent flyer program framework, merging Korean Air and Asiana Airlines benefits, will be submitted to the Korea Fair Trade Commission by June 2025. Customers will receive program details after regulatory approval.
Timeline of Milestones
The path to this acquisition involved multiple regulatory approvals and financial arrangements. Notable milestones include the November 2020 announcement by Hanjin Group to acquire Asiana and a series of agreements involving Korean Air, Asiana, and the Korea Development Bank. Since then, approvals from regulatory bodies across countries such as Turkey, Taiwan, the Philippines, and the European Union were obtained, with the final clearance granted by the U.S. Department of Justice in late November 2024. This journey has been significant for both Korean Air and Asiana Airlines.
In the coming months, Korean Air will oversee the transition of European routes to T’way Air and finalize the sale of Asiana’s freighter business to Air Incheon. These steps align with the overarching goal of streamlining operations and ensuring compliance with international competition regulations.
Strengthening Aviation Competitiveness
This acquisition marks a pivotal moment in South Korea’s aviation sector. By combining the strengths of Korean Air and Asiana Airlines, the merger enhances the country’s global competitive position while ensuring better connectivity and service for passengers. The unified strength of Korean Air and Asiana Airlines will reshape the industry landscape.
The integration process, set to conclude within two years, will solidify the combined airline’s position as a leading global carrier, providing expanded travel options and maintaining a commitment to operational excellence.
