Korean Air-Asiana Merger Expected to Cost Up to 1 Trillion Won

As the integration process between Korean Air and Asiana Airlines nears its final stages, the total cost associated with the merger is estimated to reach approximately 900 billion to 1 trillion won. Park Hee-don, head of the Management Strategy Division, stated that an analysis, considering changes since the Ministry of Land, Infrastructure and Transport's approval in 2024, estimates the integration cost at 900 billion to 1 trillion won, with annual synergy effects projected to exceed 300 billion won. These synergies are expected to be maximized through the optimization of schedules, aircraft, and purchasing, as well as the expansion of sales networks via the joint venture with Delta Air Lines.

Korean Air aims to launch the integrated airline by December 17th of this year. The combined carrier is set to become a top-10 global airline with 23 trillion won in revenue, 230 aircraft, and approximately 28,000 employees. It targets a position among the top 15 global airlines in passenger services and the top 5 in cargo operations.

Korean Air plans to finalize the mileage integration plan before the shareholder meeting scheduled for August. The company submitted its mileage integration proposal to the Korea Fair Trade Commission (KFTC) in June of last year, but it was not approved as the KFTC requested revisions late last year.

A separate shareholder meeting for Asiana Airlines was held in the same building, attended by Asiana Airlines CEO Song Bo-young.