Korean Air says it can conclude Asiana takeover via big concessions

The head of Korean Air Lines Co. has expressed confidence over the airliner's proposed acquisition of Asiana Airlines, saying, "We will make it happen."

In an interview with Bloomberg TV on Monday, Chairman and CEO of Korean Air Cho Won-tae said, "We are in this 100%," adding, "I'm going to push it all the way through."

Cho's comments come at a time when the European Commission of the European Union and the US Department of Justice have both expressed negative views on the proposed merger.

"Basically, they're (the US, EU and Japan) asking for more competition, and we believe we have a good solution for it and I am positive that I can convince them that this is the restoration of the competition they are asking for," he added.

On May 12, the chairman visited Washington for talks with DOJ officials.

On Cho's comments on what Korean Air must "give up" to get approval, an airline industry observer said this referred to the expanded return of slots, or the rights to use airports at specific times, on overseas routes. The EC and DOJ have reportedly said a competitor at Asiana's level is needed to resolve fears that Korean Air could gain a route monopoly.

Domestic low-cost carriers like Air Premia and T'way Air said they plan to acquire slots as alternative airlines, but fair trade authorities abroad say this is not enough.

Korean Air, which began its bid to take over Asiana in November 2020, has submitted a merger report to 14 countries including its home nation. The EU, US and Japan are the only three states whose approval remains pending.

In a speech to the IATA's meeting, the chairman also said demand from Korea to the Americas and Europe is strong and near pre-pandemic levels and yield is much higher, adding that demand in China is weak but on the way toward opening up, so full recovery of demand is expected by year's end. 

Write to Hyung-Kyu Kim at khk@hankyung.com