Korean Air-Asiana Problems
Correction 5/27 8:20 a.m. KST: A previous version of the story incorrectly referred to a meeting on May 23.
The U.S. government is mounting pressure on Korean Air to address antitrust concerns over the merger of Korean Air and Asiana Airlines.
Much attention is focusing on the future of the merger. According to the airline industry, the U.S. Department of Justice’s position on the merger is that the merged airline’s antitrust concerns have not been resolved and that the U.S. Department of Justice wants the two Korean airlines to find a way to resolve their monopoly issue. This is what the United States has said since the announcement of Korean Air’s acquisition of Asiana Airlines.
Various analyses were made with respect to the U.S. government’s attitude towards the merger. Some analysts believe that Korean Air’s failure to address U.S. concerns has raised a red card on their marriage. On the other hand, other analysts believe that since there is no other airline of Asiana’s size, the U.S. government will give the merger the green light after expressing its antitrust concerns. They say that the U.S. government is willing to approve the merger.
“After the meeting on May 12, we were told that U.S. officials will continue to discuss the issue with us,” a Korean Air official said. “We have been explaining that it is possible to restore a competitive environment because new airlines are entering and expanding to routes with monopoly concerns.”