By Sharon Petersen
Published Thu Dec 12, 2024
Korean Air has completed its acquisition of Asiana Airlines, four years after announcing its decision on November 16, 2020.
On December 12, Korean Air acquired 131,578,947 newly issued shares of Asiana Airlines, representing a 63.88% ownership stake and making Asiana Airlines a subsidiary of Korean Air.
The completion follows Korean Air's payment of KRW 800 billion to Asiana Airlines on December 11, concluding the share purchase transaction. This brings the total investment through the third-party allotment capital increase to KRW 1.5 trillion, including the previously paid deposit of KRW 300 billion and interim payment of KRW 400 billion.
Asiana Airlines will hold an extraordinary general meeting of shareholders on January 16 to appoint new board directors nominated by Korean Air.
Korean Air plans to complete the integration with Asiana Airlines within two years. The integration strategy includes network optimization through diversified flight schedules on overlapping routes, service expansion to new destinations and enhanced safety investments. The merger aims to strengthen national aviation industry competitiveness, enhance Incheon Airport's hub capabilities and expand global network reach.
The integration will proceed without workforce restructuring. The combined organization projects natural staff growth through business expansion, with employees in overlapping functions being reassigned within the organization.
The integrated frequent flyer program framework will be submitted to the Korea Fair Trade Commission by June 2025. Program details will be communicated to customers following regulatory review.
The acquisition represents a strategic milestone for Korea’s aviation industry. Korean Air will proceed to implement measures to strengthen the country’s aviation capabilities and enhance its competitive position in the global market.
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