Korean Air to launch integrated flag carrier after Asiana merger

Korean Air will officially launch its integrated flag carrier on Dec. 17 after completing legal procedures for its acquisition of rival Asiana Airlines, local media reported Wednesday.

The merger follows a share subscription agreement first signed in November 2020 and will see Korean Air absorb all of Asiana’s assets, liabilities, rights, obligations and workforce as part of a full-scale integration of South Korea’s two biggest airlines, The Korea Times reported.

Under the agreed merger terms, one Korean Air share will be exchanged for 0.2736432 shares of Asiana Airlines.

The acquisition comes after the South Korean government and state creditors provided 3.6 trillion won ($2.42 billion) in emergency support to financially troubled Asiana during the COVID-19 pandemic.

“The integration will elevate Korean Air’s global market presence and establish Incheon International Airport as a dominant global hub through optimized network connectivity and increased transit efficiency,” a Korean Air official said.

The airline is also working to integrate loyalty programs and upgrade passenger services and training facilities ahead of the launch of the combined carrier.