Korean Air’s acquisition of Asiana Airlines is a step closer as the UK government shows signs of warming up to the proposed acquisition. The Competition Markets Authority (CMA) said that it considers there are reasonable grounds for believing that undertakings offered by Korean Air Lines might be accepted by the CMA.
However, this does not mean that the CMA will approve the merger. The final approval will come after detailed deliberation by the CMA which is only expected next year.
Korean Air Lines is currently waiting for approval from five jurisdictions, including the European Union, the United States, China, and Japan.
The UK government had expressed concerns over the planned merger of South Korea's Korean Air and Asiana Airlines in November 2022, as it could lead to higher prices for passengers flying between London and Seoul, as well as impacting the availability and cost of cargo services, CMA said in a statement.
Currently, Korean Air and Asiana are the only two airlines operating nonstop services between London and Seoul. And if these two airlines were to merge the only competition, they would face would be from carriers offering the connection with a stopover like Emirates, Turkish Airlines, and Lufthansa.