Korean Air has closed its acquisition of Asiana Airlines, four years after announcing its intent to takeover on November 16, 2020.
On December 12, 2024, Korean Air announced that it had acquired 131,578,947 newly issued shares of Asiana Airlines, representing a 63.88% ownership stake and making Asiana Airlines its subsidiary.
A day prior to the shares acquisition, the South Korean flag carrier paid KRW 800 billion ($558.58 million) to Asiana Airlines, securing its controlling stake.
Korean Air said it 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 (ICN) hub capabilities and expand global network reach.
On January 16, 2025, Asiana Airlines will hold an extraordinary general meeting of shareholders to appoint new board directors nominated by Korean Air.
Korean Air said that 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 takeover plan was first announced in November 2020 by the Hanjin Group, a South Korean business conglomerate that operates in a variety of industries, including transportation, airlines, hotels, tourism and airport businesses.
On January 14, 2021, Korean Air submitted business combination reports to the Korea Fair Trade Commission and 13 overseas competition authorities. The acquisition plan received approval from various competition authorities through the next three years. It is still pending review by the US Department of Justice.