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The Fair Trade Commission, which has been reviewing the mergers and acquisitions between Korean Air and Asiana Airlines, has made a conditional approval decision.
However, this is not the only end for us, we also have to go through other countries that are competing with us.
Reporter Lee Hye-mi reported.
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Fair Trade Commission approved the merger under conditions.
In order to allow competitors to enter the 26 international and 8 domestic routes, which the two airlines merge and monopolize, they have to return the slots and transportation rights, which is the number of possible take-offs and landings per hour, for 10 years from the date of completion of the merger.
These include 5 routes from the Americas, including Seoul-New York, 6 routes from Europe, including Seoul-Barcelona, and 5 routes from China, including Busan-Qingdao, which are evaluated as being cheap.
It also restricted airfare increases and added the condition that the mileage system could not be changed arbitrarily.
[Chairman Cho Seong-wook/Fair Trade Commissioner: It is meaningful that it has laid the foundation for maintaining and strengthening the competitive system in the Korean aviation market in the future while blocking the possibility of consumer harm caused by the merger of the two companies.]
Korean Air is disappointing about the strict conditions However, he said that he would accept it, and the LCC industry, a low-cost airline, expressed his expectations.
[Domestic LCC industry official: When specific guidelines for route redistribution come out, we plan to analyze business feasibility and prepare for service.]
The remaining procedure is approval from overseas competition authorities.
The US, EU, Japan, and China are reviewing mergers, and China, with many competitive factors, emerged as a variable.
[Lee Yun-cheol/Professor of Business Administration, Korea Aviation University: In the case of China, I think the most favorable measures for domestic airlines will be put in a little more.
So, there is concern that additional restrictions may be imposed in that area.]
The Fair Trade Commission will make a final decision by reflecting the examination results of foreign competition authorities.
(Video coverage: Kim Min-cheol, video editing: Kim Byung-jik, CG: Kang Yu-ra)