Malaysia to give Korean Air-Asiana Airlines merger the green light
In a draft decision, the Malaysian Aviation Commission (MAVCOM) said the proposed Korean Air (KAL)-Asiana Airlines merger would not infringe local laws. Read More » MAVCOM said the tie-up was within the scope of Malaysia's aviation competition act. "The anticipated merger is a failing firm defence merger, with Korean Air Lines Co. Ltd. entering into a share subscription agreement with Asiana Airlines Inc. on November 17, 2020," MAVCOM said. "Asiana Airlines Inc. has been in a situation of financial distress for some time and cannot be rehabilitated but for the anticipated merger." KAL announced the proposed merger with its rival in November last year. Subsequently, it has said it hoped to complete the union of South Korea's two largest airline groups by 2024. Completion of the deal requires regulatory approval from a number of jurisdictions. The application to MAVCOM was submitted in March.