The merger of Korean Air Lines(003490) and Asiana Airlines(020560) was finally approved on the 12th after board meetings and shareholder meetings. The business combination process that began in Nov. 2020 has entered the final stage.
Korean Air Lines said it held a regular board meeting that morning at the Seosomun building in Jung-gu, Seoul, and passed the merger approval agenda. Meeting the requirements for a small-scale merger, the procedure was completed by a board resolution without a separate shareholders meeting.
Asiana Airlines also held an extraordinary shareholders meeting the same day at its headquarters in Gangseo-gu, Seoul. With 81.86% of all shareholders attending, 99.3% of those present voted in favor of the absorption-type merger agenda.
Korean Air Lines and Asiana Airlines plan to complete creditor protection procedures and finish the merger registration on Dec. 17.
Earlier, the Ministry of Land, Infrastructure and Transport (MOLIT) conditionally approved the merger on June 25, and the merger securities registration statement filed with financial authorities took effect on July 24. The acquisition of an integrated air operator certificate (AOC) and the process of obtaining operating permits from overseas authorities are also underway in consultation with relevant agencies.
As integration preparations enter the final stretch, the launch of a domestic super-sized airline has passed a major hurdle. Korean Air Lines and Asiana Airlines are continuing job training for employees in the passenger, cargo, flight, and cabin institutional sectors. The integrated emergency evacuation demonstration was also completed successfully.
However, the supplementary order related to mileage that the Korea Fair Trade Commission notified in Dec. last year has not yet been resolved. Although Korean Air Lines submitted a revised plan in Jan., it has not received final approval from the Korea Fair Trade Commission (FTC). If approval is not granted by Dec., the two companies will have to operate their mileage programs separately.
Song Bo-young, CEO of Asiana Airlines, said, "We will be reborn as an integrated Korean Air Lines," and added, "We are faithfully consulting with the Korea Fair Trade Commission (FTC) to protect consumer interests and minimize inconvenience."