The merger between South Korea's two leading airlines Korean Air Lines Co. and Asiana Airlines Inc. passed a hurdle as China's antitrust watchdog gave the green light for the deal.
According to Korean Air on Monday, China's State Administration for Market Regulation (SAMR) approved Korean Air's plan to acquire Asiana Airlines after a review.
Korean Air submitted a business combination report in January last year and has discussed corrective measures with SAMR for about two years.
SAMR called for measures to ease concerns about a market monopoly after the merger. In its corrective action plans submitted to SAMR, Korean Air pledged to support airlines wishing to enter nine flight routes between the two countries by transferring slots, including five routes suggested by Korea Fair Trade Commission and four by SAMR.
"Chinese approval will have a positive impact on the ongoing reviews by antitrust authorities of other countries," said a Korean Air official.
In February this year, Korean Air received conditional approval from Korea Fair Trade Commission for the deal and has been
waiting for approval from antitrust regulators in the US, the EU, China, and Japan.
Among them, the Competition and Markets Authority (CMA), the competition regulator in the UK, will make a decision as early as next month or Mar. 23 at the latest.
The CMA has previously hinted that it would accept the corrective suggestion prepared by Korean Air, where the company promised to hand over up to seven of the 17 slots (number of takeoffs and landings at Heathrow Airport) owned by Korean Air and Asiana Airlines to Virgin Atlantic of the UK.
Write to Seo-Woo Jang at
suwu@hankyung.com
