Korean Air to launch integrated airline in December

Korean Air has announced it will fully integrate Asiana Airlines, forming one from the combined airline on December 17.

The launch of the integrated airline on December 17 was announced after the boards of Korean Air and Asiana approved the merger agreement on May 13. The formal contract execution is scheduled for May 14. It marks the completion of the five-year process which started with the initial share subscription agreement in November 2020. Upon execution, Korean Air will absorb all assets, liabilities, rights, obligations, and personnel of Asiana.

“The South Korean government and state-led creditors provided KRW 3.6 trillion in liquidity support to Asiana Airlines to stabilize the domestic aviation industry following pandemic-driven losses. Korean Air managed Asiana Airlines’ financial and operational restructuring during the acquisition process, which included full public fund repayment.”

According to Korean Air, the merger ratio has been set at 1 share of Korean Air to 0.2736432 shares of Asiana Airlines. The figure was calculated based on the base market price under Korea’s Capital Markets Act, utilizing a weighted arithmetic average of closing prices over the past month, the past week, and the most recent trading day.

Korean Air’s capital is projected to increase by approximately KRW 101.7 billion, through this transaction.

“Korean Air plans to conduct the transaction as a small-scale merger in accordance with Korea’s Commercial Act. Under these provisions, the Korean Air board resolution will substitute for the general shareholder meeting, while Asiana Airlines will convene an extraordinary general meeting in August to resolve the merger.”

“To ensure transaction fairness, Korean Air implemented the Ministry of Justice's guidelines for director conduct during corporate reorganizations. The ESG Committee served as a special review body to audit transaction terms, while independent external experts verified valuation methodologies. Detailed fairness measures and results will be disclosed in the upcoming registration statement.”

After the contract execution on May 14, Korean Air will then submit a merger application to South Korea’s Ministry of Land, Infrastructure and Transport (MOLIT). In June 2026, Korean Air will apply for an Operations Specifications (OpSpecs) amendments to standardize Asiana Airlines aircraft and safety systems under Korean Air’s existing Air Operator Certificate (AOC).

Following the domestic approvals, Korean Air will proceed with sequential regulatory filings with international aviation authorities to align safety management systems and operational protocols across its network.

Leading up to the full integration in December, Korean Air is finalizing specific investments to support the combined airline operations including service upgrades, training standardization, facility modernization, and Maintenance Repair and Overhaul (MRO) capacity.

“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. Korean Air is also finalizing the loyalty program consolidation in coordination with the Korea Fair Trade Commission and relevant authorities to ensure a seamless transition for passengers.”

First approved by Korean Air’s parent company Hanjin Group in November 16 2020, the Korean Air-Asiana merger has obtained approvals from 13 global jurisdictions along with the Korea Fair Trade Commission (KFTC). Korean Air then acquired the majority 63.88% stake in Asiana in December 12, 2024.