The European Union (EU) has extended the deadline to make a provisional decision regarding the merger of Korean Air (KE, Seoul Incheon) and Asiana Airlines (OZ, Seoul Incheon). On March 7, the deadline was pushed back 20 working days from July 5, 2023, to August 3. No reason was provided for the delay.

Korean Air wants to buy a 63.88% stake in Asiana and merge the two airlines in a KRW800 billion won (USD607.5 million dollars) deal that would see it become one of the biggest airlines in the world. However, the merger depends on approval from competition authorities in multiple jurisdictions. Many, including recently the United Kingdom, have okayed the merger (albeit often with conditions), but three key markets, Japan, the US, and the EU, are yet to give approval.

In February, the EU said it would open an "indepth investigation" into the merger after identifying competition concerns in both the cargo and passenger markets on routes between South Korea and EU member countries. In a statement, the EU pointed to three areas of concern, including; (i) potentially reduced competition in the provision of passenger transport services on four routes between South Korea and the EU. While not specifically identified, those routes are believed to be Seoul Incheon - Frankfurt International, Seoul Incheon - Paris CDG, Seoul Incheon - Rome Fiumicino, and Seoul Incheon - Barcelona El Prat; (ii) the potential elimination of competition in passenger transport services between South Korea and EU member nations, and; (iii) potentially reduced levels of competition in the provision of cargo transport services between Europe and South Korea.

"With our in-depth investigation, we will ensure that the acquisition of Asiana by Korean Air does not impede competition and will not lead to higher prices, less capacity or lower quality for passengers and cargo air transport services," said Margrethe Vestager, Executive Vice-President in charge of EU competition policy.

Following the EU identifying its concerns, Korean Air is required to propose possible solutions, which are believed to include surrendering slots to Europe-based airlines so they can begin or increase flights to South Korea. Airlines from EU member nations that already fly to South Korea include Air France, KLM Royal Dutch Airlines, Lufthansa, Finnair, and LOT Polish Airlines. However, according to ch-aviation capacities data, between them, Korean Air and Asiana enjoy a 51% plus market share on routes between Europe and South Korea. Notably, to secure merger approval from the UK's Competition and Market Authority (CMA), Korean Air agreed to provide Virgin Atlantic (VS, London Heathrow) with enough slots to start operating a daily roundtrip London Heathrow - Seoul Incheon service. Following the positive CMA outcome, South Korean media are reporting that Korean Air is quietly confident it will also secure EU approval, with a Korean Air spokesperson saying that "extension of the review period is a commonly used procedure to secure sufficient review period for cases requiring corrective measures."