Asiana Airlines has been fully acquired by Korean Air, four years after the company made the announcement on November 16, 2020.
Asiana Airlines became a Korean Air subsidiary on December 12 when Korean Air purchased 131,578,947 freshly issued shares of the airline, acquiring a 63.88% ownership stake.
The completion comes after Korean Air completed the share purchase deal by paying Asiana Airlines KRW 800 billion on December 11. With the previously paid deposit of KRW 300 billion and the interim payment of KRW 400 billion, the total investment through the third-party allocation capital increase now stands at KRW 1.5 trillion.
In order to select new board directors recommended by Korean Air, Asiana Airlines will hold an extraordinary general meeting of shareholders on January 16 2025.
Within two years, Korean Air intends to finish merging with Asiana Airlines. Network optimisation through varied flight schedules on overlapping routes, service expansion to new destinations, and increased safety spending are all part of the integration strategy. The goal of the merger is to increase the competitiveness of the national aviation sector, improve the hub capabilities of Incheon Airport, and broaden the reach of the worldwide network.
The integration will go on without reorganising the workforce. Employees in overlapping responsibilities will be transferred within the united organisation, which anticipates natural personnel growth through business expansion.
By June 2025, the blueprint for the integrated frequent flyer program will be sent to the Korea Fair Trade Commission. After governmental revie, customers will be informed of the program’s details.
For Korea’s aviation sector, the acquisition marks a significant strategic turning point. Korean Air will continue to take action to improve its competitive position in the international market and fortify the nation’s aviation capabilities.
