Korean Air merger review still on hold with EU

The evaluation of Korean Air's proposed acquisition of Asiana Airlines remains on hold due to "missing information" surrounding the merger. Korean Air submitted a remedy plan in May, and hopes to resume the evaluation shortly.

Korean Air and Asiana Airlines planes are parked at Incheon International Airport on Nov. 2. [YONHAP]

European regulators' evaluation of Korean Air's proposed acquisition of Asiana Airlines is still on hold.

The European Commission (EC) has maintained the suspension for more than two weeks since Korean Air's submission of its plan for remedial measures. The regulators have cited “missing information” surrounding the merger as the cause of the delay, a source familiar with the EC told Yonhap.

The EC initially paused its evaluation of the merger between the two biggest Korean airlines in response to a report that raised concerns back in May. The report highlighted potential competition issues in both passenger and cargo transportation on European routes in the event of the merger.

Korean Air submitted a remedy plan to the EC on Nov. 2 in response to those concerns. This plan included details about the post-merger sale of Asiana Airlines' cargo business division. The airline expressed hope that the submission would lead to conditional approval of the merger by the end of January.

Korean Air, in response to the EC's continued suspension, says it's in a phase of discussions aimed at confirming additional details. The company says it hopes to recommence the evaluation in the future, noting that such a process is “quite conventional” in corporate merger evaluations.

“We are continuously engaging in discussions with the EC regarding the submitted remedy plan earlier this month and are in the process of fulfilling follow-up procedures, including providing additional information requested by the EC,” Korean Air said in a statement Thursday.

Remaining optimistic, Korean Air stated that, “We anticipate the EC to resume the evaluation shortly,” reiterating its commitment to active cooperation to ensure a swift conclusion.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]