The Korean Air-Asiana Airline acquisition has hit another snag as a recent report suggests that European Union (EU) plans to probe the deal a little further. The EU is planning to will start a four-month-long investigation into the proposed merger of Korean Air with Asiana Airlines, Reuters reports.
The EU antitrust regulators were supposed to take a decision by February 17, 2023.
Now as per the report, a full-scale investigation will be launched and will focus primarily on four key routes to Barcelona, Frankfurt, Rome, and Paris for both passenger and cargo flights. According to sources cited in the report, Korean Air could have to give airport slots to other carriers in competition.
Korean Air finalised the merger with Asiana around two years ago but getting the necessary approvals from foreign regulators has taken far more time than anticipated. Many foreign regulators have given the approval on the condition that Korean Air would transfer slots to other airlines, should the need arise.
The United Kingdom is also taking time to review the merger details and has asked for two months more as it could not decide previously allotted. The new timeline is March 23, 2022.
Several countries have given their approval to the merger, but some key markets, such as the EU, US, UK, and Japan, are still reviewing the deal.
Currently, Korean Air and Asiana Airlines are the only carriers operating flights between London Heathrow and Seoul and a merged airline connecting the two countries without any other carrier is not viewed as an ideal situation by experts.