The European Commission (EC) threw cold water on Korean Air’s proposed plans to acquire Asiana Airlines, citing concerns about reduced competition. The EC stated that South Korea’s two largest airlines are strong and close competitors that provide passenger and cargo air transport services between the European Economic Area (EEA) and South Korea. The EC is concerned that other competitors would be unable to exert competitive pressure once Korean Air and Asiana Airlines have merged.

Korean Air and Asiana Airlines made up 100% of the flights between Incheon and Barcelona, 75% of the flights to Rome, 68% to Frankfurt, and 60% to Paris before the COVID-19 pandemic broke out. Fourteen nations including South Korea, China, Australia, Singapore, Thailand and Vietnam approved the proposed merger. The EC will decide to approve or block the deal by July 5th. If it decides to block the deal, Korean Air’s acquisition attempt will fail regardless of the other countries’ previous approval.