Korean Air, Asiana Airlines stocks surge as EU merger approval nears

2024.01.15 11:26:01 | 2024.01.15 15:59:45

Asiana Airlines’ head office이미지 확대

Asiana Airlines’ head office

Stocks of Korean Air Lines Co. and Asiana Airlines Inc. rose Monday following reports that the European Union’s antitrust regulator is anticipated to give a nod to the merger of the two airlines.

Shares of Korean Air were trading 1.97 percent higher at 23,300 won as of 10 a.m. on Monday and those of Asiana Airlines were up 8.51 percent to 12,370 won.

Reuters reported Friday that the EU authority’s final approval for the corporate merger of Korean Air and Asiana Airlines is imminent, following Korean Air’s pledge to sell Asiana Airlines’ cargo unit and relinquish four slots on European routes through its remedy offers.

Shares of Korean budget airline, T’way Air Co., also gained on Monday, following the news that it is a likely candidate to acquire Asiana Airlines’ cargo business.

In November 2020, the merger process of the two airlines gained momentum following the merger plan announced by the Korea Development Bank (KDB). However, in May 2023, the European antitrust authority released its assessment of the merger, expressing concerns about potential disruptions in passenger and cargo transport competition on European routes due to the merger, causing a delay.

In response, Korean Air submitted remedial measures to the European Commission early last month, proposing the sale of Asiana Airlines’ cargo business, which accounts for over 20 percent of the airline’s revenue.

By Pulse

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