Another hurdle is out of the way from the Korean Air-Asiana Airlines merger with the United Kingdom’s Competition and Markets Authority (CMA) approval. The proposed merger is awaiting approvals from the European Union, Japan, and the United States.
Just last month the UK’s regulatory body asked for more time to consider the potential merger raising concerns over reduced competition. Currently, Asiana Airlines and Korean Air were the only two airline operating direct London-Seoul route. The CMA had previously noted that it could accept the merger under reasonable circumstances.
The CMA has approved of the merger under the condition that Virgin Atlantic should lunch daily services between London-Seoul till the end of winter season of 2026.
A Virgin Atlantic spokesperson said: “Air passengers deserve a choice when flying. We believe that a fair and competitive market is essential for the aviation industry to evolve and thrive. We welcome the CMA’s decision regarding Virgin Atlantic’s role as the remedy taker in the Korean Air and Asiana merger, which will facilitate our entry into Seoul. We are excited to be appointed as the remedy taker to start flying to Seoul and will confirm our next steps in relation to a route start-up in due course.”
Similar to the UK, the EU previously noted its concerns about the merger’s impact on competition and ticket prices, with both carriers holding significant market share on passenger and cargo routes to Barcelona, Frankfurt, Rome, and Paris. The European Commission has until July 5, 2023, to either clear or block the acquisition.