Here is a legal marathon coming to an end that will lead to the final disappearance of the Asiana Airlines brand in Korea. Indeed, Korean Air's board of directors finally ratified the merger agreement with Asiana Airlines on 12 August, in accordance with the requirements applicable to simplified mergers under South Korean commercial law.
At the same time, Asiana Airlines secured approval from its shareholders at an extraordinary general meeting. Attendance stood at 81.86 %, whilst 99.3 % of the shares represented – amounting to 167.44 million shares – voted in favour of the transaction.
These decisions therefore formalise the merger agreement signed by the boards of directors of the two companies last May. Following creditor protection proceedings and the final administrative formalities, the legal registration of the merger is scheduled for 17 December, thereby creating what Korean Air refers to as the "integrated company".
An accelerated operational integration
Korean Air has been preparing for this for many months and has initiated its post-merger integration programme. Following the conditional approval granted by the South Korean Ministry of Land, Infrastructure and Transport on 25 June, and the subsequent validation of the merger registration filing on 24 July, the airline is now working on amending its air operator certificates as well as obtaining the necessary authorisations to operate its international routes.
The two companies are also accelerating operational readiness. Systems integration, joint staff training and team coordination are among the priorities prior to the launch of the new company.
This merger will thus put an end to a consolidation process underway for over five years and will give birth to a new South Korean national carrier whose size will allow it to compete with other aviation giants.
Changes for travellers
For passengers, the operation should also result in a change in the travel experience. In particular, Korean Air is planning the renovation of lounges, improvements to in-flight catering, and changes to the allocation of certain terminals with the consolidation of airlines with Asiana.
The objective is to progressively harmonise the services of the two companies and to offer travellers a more coherent experience within the new group. A date has been set for 17 December and the official launch of the "integrated company".
