U.S. to approve Korean Air-Asiana merger by Oct. 2024: Hanjin Chairman

Walter Cho, chairman of Korea’s Hanjin Group

Walter Cho, chairman of South Korea’s Hanjin Group, anticipated that the U.S. government will approve the proposed merger between Korean Air Lines Co. and its rival Asiana Airlines Inc. by October 2024.

“We have done everything the U.S. and the EU has requested us to do,” Cho said, in an interview with Bloomberg and Bloomberg TV on Sunday, local time. “We expect full approval by the end of October this year.”

The interview was held ahead of the International Air Transport Association (IATA)’s annual general meeting in Dubai, United Arab Emirates.

Cho added that no further concessions will be required other than the sale of Asiana‘s cargo business and the adjustment of passengers on long-haul routes.

Korean Air currently only needs approval from U.S. authorities out of the 14 competition authorities around the world.

The EU conditionally approved the merger in February 2024, requiring the sale of Asiana’s cargo business as a precondition.

Initially, Korean Air expected to receive final approval from the U.S. Department of Justice (DOJ) in the first half of 2024, but it is taking a cautious stance as it is reported that U.S. competition authorities have decided to comprehensively review the ongoing sale of Asiana‘s cargo business before reaching a conclusion.

The selection of a preferred bidder for the sale of Asiana’s cargo business, originally planned for the end of May, has been delayed by one month, causing schedule delays.

During the interview, in the meantime, Cho expressed his trust in Boeing Co.

Boeing is under investigation by the U.S. Federal Aviation Administration (FAA) following an incident in January 2024 where a modular part of the cabin, known as a “door plug,” came off in a 737 Max 9 aircraft carrying 177 passengers.

“Boeing is a strong company,” Cho said in the interview. “I believe in Boeing management. They will pull through. It might take some time.”

He also shared plans to order up to 30 new Boeing aircraft as early as July.