(Photo Vincenzo Pace)
SEOUL-BASED KOREAN Air has completed the acquisition of rival Asiana Airlines, four years after first announcing the move. On December 12, 2024, the flag carrier acquired 131,578,947 newly issued shares in Asiana, representing a 63.88% ownership stake and making Asiana a subsidiary of Korean Air. The completion follows Korean Air’s payment of £450m to Asiana Airlines on December 11, concluding the share purchase transaction. This brings the total investment to £847.4m. Asiana was due to hold an extraordinary general meeting of shareholders on January 16 to appoint new board directors nominated by Korean Air. The flag carrier plans to complete the integration with Asiana within two years. The strategy includes network optimisation through diversified flight schedules on overlapping routes, service expansion to new destinations and enhanced safety investments. A statement issued by Korean Air, said: “The merger aims to strengthen national aviation industry competitiveness, enhance Incheon Airport’s hub capabilities and expand global network reach”. According to the flag carrier, the integration will proceed “without workforce restructuring” and the combined organisation “projects natural staff growth through business expansion, with employees in overlapping functions being reassigned”.
As part of the deal, Korean Air will create a single low-cost carrier under its existing Jin Air brand, subsuming Asiana’s budget airlines Air Busan and Air Seoul. The enlarged carrier will serve as direct and stronger competition for Jeju Air and T’Way. To satisfy competition concerns, Asiana has been forced to offload its cargo division to Air Incheon.
The combined fleet totals more than 200 airframes. Asiana’s passenger roster comprises 24 A321s, 14 A330s, 15 A350s, six A380s, a single 767 and nine 777s. Meanwhile, Korean Air has ten A220s, 15 A321s, 19 A330s, two A350s, seven A380s, 24 737s, 17 747s, 46 777s and 20 787s.