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| 조원태 회장 (사진=대한항공) |
[Alpha Biz=(Chicago) Reporter Kim Jisun] The European Union has extended the deadline for the announcement of the results of its review of the merger between Korean Air and Asiana Airlines.
The European Competition Authority (EC) said on the 8th that it will extend its decision on whether to approve the merger, which is scheduled for July 6, by another 20 days (as of business days). As a result, the final date has been postponed to August 3rd. The EC originally planned to announce its approval on the 17th of last month, but it announced that it would conduct a second-stage high-intensity screening because the first-stage screening was not enough, and by extending the second-stage screening period, the final decision was delayed again.
The EC decided to take a closer look at the corrective measures to be submitted by Korean Air during the second phase of the review. Korean Air has been in talks with EC for two years but has not yet submitted a formal corrective action. The company plans to submit a corrective action plan that will soon ease market competition restrictions after the merger.
The EC predicted earlier that competition in the passenger and freight transportation service market between the European Economic Zone (EEA) and Korea could weaken, signaling a second-phase high-intensity survey.
In particular, Incheon was concerned about weakening market competition for passenger transportation services on four routes, including Paris, Frankfurt, Rome and Barcelona. As of 2019, the market share of Korean Air and Asiana airlines among domestic airlines is 60% in Incheon and Paris, 68% in Frankfurt, 75% in Rome and 100% in Barcelona.
While preparing corrective measures, Korean Air is expected to propose the return of some of the slots (the number of taking off and landing) on the route and the new launch and expansion of European national airlines or domestic airlines such as France and Germany.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
