Korean Air Plans To Buy Asiana Airlines & Possibly Merge

Korean Air has announced plans to acquire Asiana Airlines.



Korean Air’s parent company, the Hanjin KAL Group, has announced it will acquire Asiana Airlines after a board meeting earlier today.

Korean Air will buy Asiana for KRW 1.8 trillion. Korean Air’s parent company, Hanjin KAL, is receiving KRW 800 billion from Korea Development Bank, one of Asiana’s existing shareholders. Korean says its main reasons behind acquiring Asiana is to “stabilize the Korean aviation industry, which is suffering from COVID-19”.

The way this press release is worded makes it sound like a complete merger between Asiana and Korean Air which will likely get rid of the Asiana brand:

  • Once Korean Air “acquires” Asiana, it will be one of the top 10 airlines in the world.

  • Countries with less than 100 million people “in general have a single full service carrier”. With Korean Air acquiring Asiana, there will only be one full service carrier in South Korea.

  • Korean Air’s “acquisition” and the expansion of its routes, fleet, capacity, will give the airline competitiveness to compete with global airlines.

  • "The merger between the two airlines is expected to further enhance the competitiveness of the Korean aviation industry with more streamlined route operations.

It’s unclear what will happen to Asiana’s low-cost subsidiaries Air Busan and Air Seoul. Additionally, this could mean Asiana may leave Star Alliance. It’s possible Asiana could operate as a separate brand from Korean Air, but it would make sense to merge the two full service carriers to simplify operations.

Sources/Image Credits

Image Credits: https://www.airliners.net/photo/Asiana-Airlines/Airbus-A380-841/2609815/L?qsp=eJyrVkrOzytJrSgJqSxIVbJSSsxJKs1V0lEqSCxKzC1WsqqGiHimKFkZGRuYWdTWAgDBCxDY

Sources:
https://en.yna.co.kr/view/AEN20201116002651320
https://www.reuters.com/article/asiana-airlines-ma/update-1-hanjin-kal-to-buy-asiana-airlines-after-getting-724-mln-kdb-injection-yonhap-idUSL1N2I202Z
https://twitter.com/JournoDannyAero/status/1328166653222285312

What are your thoughts on this? Do you think this is a full merger or could it be similar to the “Lufthansa Group” with its ownership over Lufthansa, Swiss, Austrian Airlines, and more?

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lowers sunglasses

Jesus, they’re actually doing it.

Sad @Tsumia noises

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Also, Korean Air A350?

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Oh no, hopefully, we don’t lose a star alliance member carrier.
For people who think Star alliance > Sky Team

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I like Asiana, I don’t want it to be bought

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Oh no… Another victim due to the pandemic :(

I personally wish the latter one though, where “Lufthansa Group” with its ownership over Lufthansa, Swiss, etc. Having two airlines create healthy competition that is needed in the airline industry. You can do with one, but I’d still prefer two. You got choices :)

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well im an star alliance man and It’ll be sad for Asiana to go but I guess its for the better.

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That would be hot.

Image Credits

https://forums.x-plane.org/index.php?/files/file/25814-korean-air-airbus-a350-900/

Also, assuming they merge and no aircraft are lost in the process, Korean Air will begin operating 767s, A320s, and increase its passenger 747-400 fleet by 50% from 2 to 3 aircraft.

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I don’t know how to feel about this. Korean becoming a mega-airline would be awesome but I don’t want to lose Asiana.

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No plsss! Asiana is far much better than Korean in both soft & hard products! Flew 321 redeye to seoul years ago, they still provide full dinner & ife in their 321 regional 💯

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No freaking thanks
Seriously. Don’t merge please
We need more airlines, not less

I mean, it’s like having 2 huge carriers battle at 1 airport as their main hub.

Better to merge then risk a chance of losing.

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We can’t have more “smaller” airlines. COVID would wipe out so many. The bigger they are the more money they have and can survive economic crisises like this

Well we can’t have monopolies either
Then airlines can charge whatever they want
Aviation used to be great. Then after 9/11 we lost many airlines and standards really started to drop

Well this is news to OZVA at least…

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Well this is going to be interesting I wonder how this is going to after OZVA. 🤔

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Let the Asian Airline market monopoly begin…

oh dear

I am slightly (only slightly) worried about the already-wrecked Hong Kong aviation industry

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Thats looks cool actually looks better than the 787 IMO

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Yes because when you think less competition you think more competitive lol.

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