Korean Air to Complete Asiana Airlines Integration by December 2026.
On December 17, 2026, Korean Air will formally become an integrated flag carrier, concluding its protracted process of merging with Asiana Airlines.
The merger deal was formally executed on May 14 after being authorised by the boards of both airlines on May 13.
The two airlines’ initial share subscription agreement, which was signed in November 2020, is followed by the integration. After the merger is finalised, Korean Air will take over all of Asiana Airlines’ assets, liabilities, rights, duties, and employees.
The business claims that in order to stabilise the nation’s aviation industry during the pandemic, the South Korean government and state-led creditors gave Asiana Airlines KRW 3.6 trillion in financial support. As part of the acquisition process, Korean Air then managed the operational and financial reorganisation of Asiana Airlines, including the reimbursement of public funding.
The exchange ratio has been established at one Korean Air share to 0.2736432 Asiana Airlines shares under the conditions of the approved merger. The ratio was computed using weighted average market closing prices over several trading periods in accordance with Korea’s Capital Markets Act.
According to Korean Air, the deal is anticipated to boost its capital by about KRW 101.7 billion.
The airline intends to use a small-scale merger structure to move forward with the merger in accordance with Korea’s Commercial Act. Asiana Airlines is anticipated to hold an extraordinary general meeting in August to formally approve the merger, while Korean Air’s board approval will take the place of a shareholder meeting under this framework.
Korean Air stated that it followed the Ministry of Justice of South Korea’s instructions on director behaviour during business reorganisations in order to promote transparency and governance standards. While independent outside experts examined transaction fairness and valuation techniques, the airline’s ESG Committee served as a special review body.
Korean Air will formally file a merger application to the Ministry of Land, Infrastructure, and Transport (MOLIT) of South Korea when the merger agreement is executed.
In order to include Asiana Airlines’ aircraft and safety systems under Korean Air’s current Air Operator Certificate (AOC), the airline also intends to file for modifications to its Operations Specifications (OpSpecs) in June 2026.
The firm claims that in order to harmonise network management, safety systems, and operational processes throughout the combined airline, more regulatory filings with foreign aviation authorities would be made.
In order to support the growing airline network, Korean Air is also planning a number of operational and infrastructure expenditures.
In addition to standardised flight crew training programs for both airlines, they include improvements to airport lounges, in-flight food, and terminal amenities targeted at enhancing the passenger experience.
In order to accommodate greater operating capacity, the firm also intends to modernise operational facilities, such as the Operations and Customer Center (OCC), Cabin Crew Training Center, and Aviation Health and Medical Center.
In the maintenance section, Korean Air said that it is building a new engine maintenance facility and an expanded Engine Test Cell close to Incheon International Airport as part of the expansion of its maintenance, repair and overhaul (MRO) infrastructure.
Through enhanced network connection and transit efficiency, the combination is anticipated to bolster Korean Air’s foreign market presence and further establish Incheon foreign Airport as a significant global aviation hub.
In order to guarantee a smooth transition for customers, the airline also stated that it is collaborating with the Korea Fair Trade Commission and other authorities to complete the merging of the two airlines’ loyalty programs.
