For Acquisition of Asiana Airlines
Korean Air will submit a corporate combination report to regulation authorities in 16 countries, including Korea, the United States and Japan, on Jan. 14.
If the corporate combination report is passed, Korean Air will meet all conditions for the acquisition of Asiana Airlines.
The Korean Fair Trade Commission and foreign regulation authorities will focus on the monopolistic elements of the business combination plan. If Korean Air acquires Asiana Airlines, their combined share of domestic flights will exceed 60 percent, a level too high for the KFTC to approve in principle.
Nevertheless, some predict that the commission will approve the combination in consideration of the business conditions in the airline industry triggered by the spread of COVID-19 and the dire situation of Asiana Airlines.
If the two companies get married, it will give birth to a mega carrier which will rank the world’s 10th in asset sizes and seventh in operating volume.
Meanwhile, Korean Air announced on the same day that it has received the highest rating of five stars for four consecutive years in the Official Airline Ratings by the Airline Passenger Experience Association (APEX).
APEX, a New York-based global non-profit organization established in 1979, has 482 member companies including airlines and aircraft manufacturers. Since 2018, it has been operating an airline rating program based on feedback from passengers collected through TripIt Application.
APEX's Airline Ratings System collects feedback on airline seating, in-flight services and in-flight entertainment from passengers on more than one million flights of some 600 airlines worldwide, and then confirm the final ratings after verification by an external professional audit agency.
The five-star rating was given to Korean Air because customers gave positive responses to its unique services such as first-class Cosmo Suite 2.0 seats with enhanced comfort, in-flight entertainment with rich contents, in-flight meals using seasonal food ingredients and high-quality wine.