The US government is weighing up whether to block Korean Air’s planned acquisition of compatriot carrier Asiana Airlines, according to left-leaning news outlet Politico.
Citing "three people with knowledge of the deliberations", Politico reported on May 18 that the department was considering legal action due its concerns the merger could undermine competition on routes between the US and South Korea, a staunch US ally whose government was a key backer of the proposed merger.
Any lawsuit would be the third attempt by the Biden administration to intervene in an attempted airline merger or acquisition and, according to Politico, would be the first attempt by a US government to prevent foreign airlines from merging.
The report followed the European Union earlier the same week warning, in what were effectively preliminary objections ahead of a scheduled August 3 decision, that the proposed merger of the two biggest Korean airlines would impinge on competition on routes from the bloc to the east Asian nation.