Malaysian aviation regulators have cleared the merger between Korean Air and Asiana Airlines, becoming the latest in a growing list of regulators around the world to grant approval.
In a final decision released on September 9, the Malaysian Aviation Commission (Mavcom) reiterated the point that the merger would not infringe local competition laws, and was unlikely to have “any unilateral effects or act as a barrier to entry and expansion for the related markets.”
It also accepted Asiana’s “failing firm defense,” in which it notes that the Star Alliance carrier was struggling financially, and “cannot be rehabilitated but for the anticipated merger.”
Mavcom scoped its analysis to one route between Malaysia and South Korea — Seoul-Kota Kinabalu — given that both Korean Air sister company Jin Air and Asiana low-cost arm Air Seoul operate the route. Jeju Air, which is unaffiliated to the merger, is the third carrier to fly between both cities.
Mavcom’s decision — the first competition-related merger case reviewed by a Malaysian regulator — means Korean Air is one step closer to completing the merger with its compatriot and one-time rival Asiana.
Korean Air announced it was acquiring Asiana in November 2020, amid the coronavirus pandemic which had battered the country’s airline sector.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Chamber of Commerce Sues to Overturn FTC Non-Compete Ban
Apr 24, 2024 by
CPI
FTC Chief Warns of Healthcare Price Fixing Risks Amid Tech Advancements
Apr 24, 2024 by
CPI
Amazon’s Investment in Anthropic Faces Antitrust Scrutiny
Apr 24, 2024 by
CPI
Italian Antitrust Authority Fines Amazon €10 Million for Unfair Trade Practices
Apr 24, 2024 by
CPI
Tuta Mail Raises Alarm Over Google Search Ranking Plunge Amidst DMA Rollout
Apr 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI