Asiana shareholders approve merger with Korean Air, with aim to launch integrated carrier on Dec. 17
The agreement signed over five years ago was strongly backed in a general vote, paving the way for the airlines to complete the process within the year.
Asiana Airlines CEO Song Bo-young bangs the gavel while introducing a proposal to approve the airline’s merger agreement with Korean Air during an extraordinary shareholder meeting at Asiana’s headquarters in Gangseo District, western Seoul, on Aug. 12.YONHAP
Asiana Airlines shareholders approved the company’s merger with Korean Air on Wednesday, moving the consolidation process that began in November 2020 into its final stages after more than five years.
Asiana held an extraordinary shareholder meeting at its headquarters in Gangseo District, western Seoul, and approved the merger agreement signed on May 14 as proposed. Shareholder attendance stood at 81.9 percent, with 99.3 percent in favor.
The two carriers plan to complete the remaining procedures for Korean Air to absorb Asiana and officially launch the integrated carrier on Dec. 17.
Korean Air has been working toward the merger since announcing its acquisition of Asiana in November 2020, and the deal has undergone reviews by antitrust authorities in Korea and abroad.
Korean Air held a board meeting the same day and approved the merger. As the transaction qualifies as a small-scale merger under Korea’s Commercial Act, approval by the board replaced approval by a general shareholder meeting.
Once the merger is completed, Asiana Airlines, founded in 1988, will become part of Korean Air and cease to exist as a separate carrier after 38 years.
“We will successfully complete the merger process with Korean Air and begin anew as an integrated carrier,” Asiana Airlines CEO Song Bo-young said at the meeting. “This will be the first step toward writing a new chapter in the history of Korea’s aviation industry as a megacarrier. Based on the shareholders’ approval, we will thoroughly prepare everything necessary for the successful launch of the integrated carrier.”
Korean Air and Asiana Airlines aircraft are parked at Gimpo International Airport in Gangseo District, western Seoul, on Aug. 12, when Asiana shareholders approved the airline’s merger with Korean Air at an extraordinary shareholder meeting.YONHAP
Speaking to reporters after the meeting, Song said the company would focus on bringing employees together and minimizing inconvenience for customers.
“We are once again reviewing the preparations we have made so far. Our priority is to ensure that the benefits of the integration are returned to consumers, and that the airline earns their support,” he said. “We will work to promote harmony among employees and make sure that customers do not experience inconvenience or confusion.”
Korean Air is also providing education and training for Asiana Airlines employees in preparation for the launch of the integrated carrier.
On the integration of the two airlines’ mileage programs, Song said Asiana was “working closely with the Korea Fair Trade Commission to protect consumer interests and minimize inconvenience.” The airlines have been discussing the mileage integration plan with the commission and other relevant authorities.
“We will thoroughly prepare for the remaining procedures following shareholder approval and work toward the successful launch of the integrated carrier,” Asiana said.
BY HYEON YE-SEUL [kim.hayoon1@joongang.co.kr]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
