Korean Air takes over Asiana Airlines and plans to launch an integrated airline in 2024.
According to Park Yong-jin of the Democratic Party, along with the Political Affairs Committee of the National Assembly, Korean Air submitted Asiana Airlines' post-acquisition integration strategy to the Korea Development Bank.
The timing of the acquisition of Asiana Airlines has been delayed to next year.
Korean Air was planning to take over 63.9% of Asiana Airlines' shares by participating in a paid-in capital increase of KRW 1.5 trillion by Asiana Airlines on June 30 this year, but it is known that the acquisition was delayed in consideration of the conclusion of the business combination review.
In order to take over Asiana Airlines, it is necessary to pass the business combination screening of 9 competitors, including Korea, the United States, the EU, China, Japan, and Turkey.
When Asiana Airlines is incorporated as a subsidiary next year, we plan to analyze the mileage value of both companies, determine the conversion rate, and establish an operation plan for the integrated mileage business unit.
When Korean Air acquires Asiana Airlines, a corporate governance structure will be created from Hanjin Kal, a holding company, to Korean Air, a subsidiary, and Asiana Airlines, a grand-son subsidiary.
Asiana Airlines' subsidiaries, Air Busan, Air Seoul, and Asiana Saver, become great-grandchildren.
Under the Fair Trade Act, in order to have a great-grandchild company in the holding company's governance structure, Asiana Airlines, a grand-child subsidiary, must own 100% of the great-grandchild company or give up its largest shareholder position within two years.
However, if Korean Air merges with Asiana, this problem can be resolved.