Korean airlines all set for merger

Korea's two largest airlines are all set to complete their merger later this year. 

Korean Air's board of directors and Asiana Airlines’ shareholders have formally approved the agreement as the two airlines prepare to launch an integrated airline on December 17. 

Korean Air’s board ratified the merger agreement last week, fulfilling small-scale merger requirements under Article 527-3 of Korea’s Commercial Act, news hub Travel Mole reported.

Concurrently, Asiana Airlines secured shareholder approval during an extraordinary general meeting, with 81.86% shareholder attendance and 99.3% voting in favour.

These approvals formally ratify the merger agreement executed by both boards in May. 

Following creditor protection procedures and remaining administrative formalities, the corporate merger registration will be completed on December 17, 2026.

Korean Air continues to advance its Post-Merger Integration (PMI) roadmap. Following conditional merger approval from the Ministry of Land, Infrastructure and Transport (MOLIT) on June 25 and clearance of its merger registration statement on July 24, the airline is proceeding with Air Operator Certificate (AOC) amendments and international operational permits in close consultation with relevant authorities.

With merger approvals finalised, the two airlines are accelerating operational readiness, focusing on systems integration, joint training, and team engagement ahead of the launch. 

The birth of the integrated flag carrier will mark the completion of a consolidation process spanning over five years.

For passengers, it translates into nu,erous service upgrades, from lounge renewals, catering updates to terminal relocations to improve the traveler’s experience.

US airlines set for unlikely merger

Two most unlikely allies are to come together to create a new US airline powerhouse.

The US Justice department this week gave the all-clear for an Alaska Airlines-Hawaiian airline merger, Travel Mole reports

The $US1.9 billion deal cements Alaska’s place as the fifth-largest US airline. 

The Biden administration found no significant barriers to the deal, although it comes with some conditions.

The airlines must continue operating the same frequency of flights on routes with little outside competition and continue subsidized flights to remote communities in Alaska and Hawaii.

The airlines must also maintain the value of frequent-flyer rewards when the two loyalty programs are integrated.

Alaska Airlines says it expects to close the airline merger “in the coming days”.

The Transportation Department has to now formally approve the airline merger.

Alaska Air is the dominant partner in the deal, but said it plans to preserve the Hawaiian Airlines name.

Another airline shuts its doors

Indian airline Vistara is to be shut down.

The giant Tata Group acquired the Air India and Air India Express brands 12 months ago and has now shut down AirAsia India and Vistara.

CEO Campbell Wilson said the decision was made to continue only with the two Air India brands, as they have the strongest brand recognition globally.

Vistara, a full-service carrier, will be be integrated into Air India, while low-cost-carrier AirAsia India will become part of Air India Express.

The moves should be completed over the next few months, Wilson told local media.

The integration of Vistara is still subject to approval from Competition Commission of India.

Vistara commenced operations on January 9, 2015 with its inaugural flight between Delhi and Mumbai and was one of India's leading domestic carriers.

The airline served 34 destinations with a fleet of Airbus and Boeing aircraft that will be merged into the Air India fleet.

Singapore Airlines signals changes are afoot

Singapore Airlines might soon be part owner of two Indian airlines: Air India and Vistara. Or maybe not.

SIA confirmed this week that "confidential discussions" are ongoing with the Tata group to merge Vistara and Air India, Travel Mole reported.

Singapore Airlines currently has a 49% joint venture stake in Vistara with Tata, while Tata owns Air India outright. Tata also has 84% ownership in AirAsia India.

The Tata Group is an Indian multinational conglomerate based in Mumbai. Established in 1868, it is India's largest company with products and services in over 150 countries

“The discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India,” SIA said in a filing to the Singapore Stock Exchange.

“There is no certainty or assurance whatsoever that any definitive agreement will be entered into.

“Even if a transaction were to materialise, it would be subject to the relevant regulatory approvals.”

Tata Group has long sought to integrate AirAsia India and Vistara into Air India.

Vistara began operations in 2015. It gave the SIA Group a foothold in India’s fast-growing aviation industry and it is believed it may wish to transfer it into Tata’s integrated airline business.

South Korean airline giants closer to merger

Two of Asia's leading airlines have been given the go-head for a merger.

South Korea’s competition regulator this week granted conditional approval for a merger between Korean Air and smaller South Korean airline Asiana. 

The Fair Trade Commission green-lighted the move on condition the airlines relinquish some slots for routes where they have more than 50% of the market share, Travel Mole reported. 

Combined, they would operate around 48.9% of international flights from South Korea and 62% of domestic flights.

The merger will see the combined company become the 10th-largest airline in the world.

The exact number of slots and transportation rights the merged entity would have to give up will be decided later. 

Korean Air plans to form a totally integrated company with Asiana in 2024.

Korean airlines close to merger

South Korea's two major airlines: Korean Air and Asiana, are set to merge into one entity.

South Korea’s Fair Trade Commission this week signalled its conditional approval for the merger.

Korean Air has agreed to acquire 60% of Asiana Airlines with a plan to merge the two companies.

In a preliminary report, the FTC said the merged business would likely have to relinquish some slots to allow for consumer choice, Travel Mole reported.

The FTC said it has identified 10 routes on which a merger would give the airline a monopoly.

These include long haul routes to Los Angeles, New York, Barcelona, Seattle and Sydney.

"Redistribution of airport slots will allow other airlines to run flights," said Min Hye-young, an FTC spokesperson.

A final decision on the merger is expected in early 2022.

Korean Air, previously known as Korean Air Lines, is the largest airline and flag carrier of South Korea.

The present-day Korean Air was established on March 1, 1969, after the Hanjin Group purchased government-owned Korean Air Lines, which had operated since June 1962.

Asiana Airlines, also based in Seoul, was formerly known as Seoul Air and was founded 33 years ago.

It accounts for around 25% of South Korea's international aviation market and 20% of its domestic market.