Korean Air / Asiana Airlines merger inquiry
Source: gov.uk (2025-06-03)

The Competition and Markets Authority (CMA) is investigating the anticipated acquisition by Korean Air Lines Co., Ltd of Asiana Airlines Inc.

Statutory timetable

Phase 1

Extension of relevant time periods referred to in the undertakings in lieu of reference

21 February 2025: Following a request by Virgin Atlantic Airways Limited (the Proposed Remedy Taker under the undertakings) and consultation with Korean Air Lines Co. Ltd, the CMA has decided to exercise its discretion under clause 17.1 of the undertakings to extend (i) the ‘Proposed Remedy Taker Entry End Date’ until the end of International Air Transport Association (IATA) summer season 2026, and (ii) the ‘Extended Target Entry Date’ until the start of IATA summer season 2026.

This extension has been granted conditional on:
- Virgin Atlantic Airways Limited providing legally binding assurances to the CMA that it will commence operations as the Proposed Remedy Taker on the relevant routes at the start of summer 2026
- CMA approval of an amended framework agreement between Virgin Atlantic Airways Limited and Korean Air Lines Co. Ltd that reflects the extension to the timeline and Virgin Atlantic Airways Limited’s 2026 entry commitment to the CMA
Undertakings in lieu of reference accepted

1 March 2023: The CMA has accepted undertakings in lieu of reference for the anticipated merger between Korean Air Lines Co., Ltd and Asiana Airlines Inc.
- Full text decision (PDF, 206 KB) (https://assets.publishing.service.gov.uk/media/6402074e8fa8f527f110a3a2/Final_Acceptance_of_UILs.pdf) (3.3.23)
- Final undertakings (PDF, 400KB) (https://assets.publishing.service.gov.uk/media/63ff1bb7e90e0740dd5ac0d3/Final_Undertakings_in_Lieu.pdf) (1.3.23)
- Appointment of monitoring trustee (PDF, 120KB) (https://assets.publishing.service.gov.uk/media/683dc2f572f067240eb90b9e/Korean_Air_Asiana_Airlines_appointment_of_monitoring_trustee.pdf) (3.6.25)
Extension of consideration of undertakings in lieu

26 January 2023: The CMA has extended the consideration of undertakings in lieu until 23 March 2023.
- Notice of extension (PDF, 82.9 KB) (https://assets.publishing.service.gov.uk/media/63d154288fa8f53fe806715d/Notice_to_extend_UILs_Period_-_KAL-Asiana.pdf) (26.1.23)
Undertakings in lieu of reference consultation

8 December 2022: We are consulting on proposed undertakings in lieu of a reference for the anticipated acquisition by Korean Air Lines Co. Ltd of Asiana Airlines Inc.
- Notice of consultation (PDF, 175 KB) (https://assets.publishing.service.gov.uk/media/6391fb3f8fa8f53ba420dee8/Consultation_on_UiLs_Korean_Air__.pdf) (8.12.22)
- Proposed undertakings (PDF, 320 KB) (https://assets.publishing.service.gov.uk/media/6391fd75d3bf7f1bd20b4bff/Korean_Air_Asiana_-_Draft_Undertakings_in_Lieu_8_December_22__1.pdf) (8.12.22)
CMA to consider undertakings offered

28 November 2022: The CMA considers that there are reasonable grounds for believing that the undertakings offered by Korean Air Lines Co. Ltd, or a modified version of them, might be accepted by the CMA under the Enterprise Act 2002.
- Full text decision (PDF, 301 KB) (https://assets.publishing.service.gov.uk/media/6391fa038fa8f53bafa725b6/Korean_Air_Asiana_-_Decision_that_UIL_might_be_accepted_.pdf) (8.12.22)
Reference unless undertakings accepted

14 November 2022: The CMA has decided, on the information currently available to it, that it is or may be the case that this merger has resulted or may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom. This merger will be referred for a phase 2 investigation unless the parties offer acceptable undertakings to address these competition concerns.
- Full text decision (PDF, 731KB) (https://assets.publishing.service.gov.uk/media/63b6fb7cd3bf7f612bc37e2c/SLC_Decision_Korean_Air_Asiana-14_November_2022-Non-confidential_version.pdf) (6.1.23)
- Summary of phase 1 decision (PDF, 145 KB) (https://assets.publishing.service.gov.uk/media/637235d0d3bf7f4a502a4fb8/Summary_Korean_Air_Asiana.pdf) (14.11.22)
- Press release: Airline merger could see passengers pay more to fly from London to South Korea (https://www.gov.uk/government/news/airline-merger-could-see-passengers-pay-more-to-fly-from-london-to-south-korea) (14.11.22)
Launch of merger inquiry

16 September 2022: The CMA announced the launch of its merger inquiry by notice to the parties.
- Commencement notice (https://assets.publishing.service.gov.uk/media/63232497e90e07736cff6c43/KorenAir_Asiana_CN_web.pdf) xx-xxxx-xxxx)
Invitation to comment of 16 September 2022: closed 3 October 2022

The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

To assist it with this assessment, the CMA invites comments on the transaction from any interested party.

Invitation of 19 November 2021: now closed

The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

To assist it with this assessment, the CMA invites comments on the transaction from any interested party.

These comments should be provided by the deadline set out above.

Contact

Please send written representations about any competition issues to:

Bix Gould, xxx@xxx.xx (mailto:xxx@xxx.xx)

Federico Torrigiani, xxx@xxx.xx (mailto:xxx@xxx.xx)