Korean Air moves forward with Asiana integration
Korean Air has finalised a post-merger integration plan with Asiana Airlines after receiving confirmation from the Korea Development Bank.
In November, Korean Air signed a deal to acquire Asiana’s new shares and perpetual convertible bonds.
After the contract, Korean Air thoroughly conducted due diligence and created the post-merger integration plan, which it submitted to the Korea Development Bank in March.
For three months, the state-owned bank reviewed the plan and made revisions in consultation with Korean Air, the ministry of land, infrastructure and transport, and other relevant agencies.
The finalised plan includes integration plans for the airlines’ full-service carriers and low-cost carriers; measures to resolve restrictions of holding companies stipulated in the Fair Trade Act; employment retention and succession of collective agreements and plans to effectively reorganise relevant subsidiaries.
The newly integrated global airline will increase operational efficiency of overlapping passenger and cargo routes, while diversifying its schedules and expanding opportunities for new routes, which will increase customer benefits and create integrated synergy by reducing costs, a statement said.