The European Commission (EC) has confirmed receipt of the "corrective action plan" submitted by Korean Air (KE, Seoul Incheon) in its last-ditch bid to secure approval for a merger with Asiana Airlines (OZ, Seoul Incheon). The EC says it received the amended submission on November 3, 2023, one day after Asiana agreed to divest its cargo arm.

While the plan's contents were not made public, it is known that the corrective action measures contained several concessions, including a proposal to surrender slots at four European airports, provide assistance to other airlines to begin operating to those airports from South Korea, and selling Asiana's cargo business. Korean Air and Asiana hold substantial cargo and passenger market shares on flights between South Korea and the European Union, and the EC's competition regulators hold concerns that the planned USD1.4 billion merger between the two airlines will see the new entity dominate the routes with adverse competitive outcomes.

In May 2023, the EC released its statement of objections to the merger, sparking a scramble by Korean Air and Asiana to resolve the issues raised.

"On June 28, 2023, the Commission stopped the clock in its in-depth investigation into the proposed acquisition of Asiana by Korean Air," an EC spokeswoman told ch-aviation. "To comply with merger deadlines, parties must supply the necessary information for the investigation in a timely fashion. Once the missing information is supplied by the parties, the clock is re-started."

Separately, as reported by Bloomberg Law, Korean Air CEO Walter Cho said last week that any buyers of Asiana's cargo would need to hold a current air operator's certificate (AOC). "It can't just be a random company," he said. "It has to be a company with an AOC." Three South Korean low-cost carriers have formally expressed interest in acquiring Asiana's cargo business, namely Air Premia, Eastar Jet, and cargo operator Air Incheon. The sale of Asiana's cargo operations and surrendering any airport slots is contingent on the EC approving the merger. Approval (or otherwise) is expected in the first quarter of 2024. Korean Air and Asiana also need to secure clearance from Japanese and US competition authorities. This is expected to come after, and be influenced by, the EC outcome.