Following a market consultation on the Korean Air-Asiana Airlines merger with interested parties, the Australian Competition and Consumer Commission (ACCC) announced its decision to approve Korean Air’s acquisition of Asiana Airlines.
While Korean Air and Asiana are currently the only airlines offering direct flights between Sydney and Seoul, the ACCC has stated that Qantas and Jetstar will soon begin operations on this route, providing for effective competition.
ACCC Chair, Gina Cass-Gottlieb, believes that the acquisition will put competition on Australia’s flying kangaroo.
“We believe that the Qantas Group’s offering flights on the Sydney to Seoul route with its full-service and low-cost carriers imply that there is likely to be effective competition.”
Korean Air Expectation
Korean Air anticipates that the clearance from the Australian competition authorities will facilitate and speed up the remaining approval procedures. Korean Air has gotten support from Korea, Turkey, Taiwan, and Vietnam since January 14, 2021, when it submitted business combination reports to the nine nations that demand reporting.
According to the Thailand Competition Commission, a business combination report was not required. Singapore and Malaysia have given Korean Air the go-ahead in countries where reporting is arbitrary. The business merger report was not needed, according to the Philippines.
Korean Air will continue to cooperate and aggressively communicate with the remaining regulatory organizations, such as the United States, the European Union, China, Japan, and the United Kingdom, where reporting is arbitrary, to completions the process.
The South Korean flag carrier requested M&A approvals in exchange for receiving the ninth permission from 14 significant market authorities.
The Australian Competition and Consumer Commission (ACCC) said it would not object to the arrangement.
Although Qantas and Jetstar will soon offer both passenger and cargo flights on the same route later this year, the commission highlighted that the purchase would unite the only two suppliers of direct flights between Sydney and Seoul.
The regulator claimed that whether or not the transaction goes through, there will likely be effective competition because Qantas Group offers flights through its full-service and low-cost carriers.
The airlines are now awaiting regulatory permission from the United States, China, Japan, Britain, and the European Union after Australia gave the go-ahead.
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