Korean Air is looking to complete its acquisition of Asiana Airlines this year while admitting that the process — which was first announced in November 2020 — has "taken much longer than expected."
In addressing the merger with Asiana, Korean Air chairman and chief executive, Walter Cho said he is confident that the procedure will be finalised in 2024 and asked all employees of the South Korean flag carrier to come together for the launch of an integrated airline.
"We will complete the acquisition of Asiana Airlines in 2024," Cho said in his New Year's address to the Korean Air team. "Although it has taken much longer than expected, the integrated airline will be a tremendous growth engine for us in the long run."
The Korean Air chairman and CEO added that the merger will see the airline "poised to stand shoulder to shoulder with global leading airlines."
"The merger will optimize our network and allow us to operate to new destinations so that we may offer customers more choices," Cho said.
The Korean Air chief also noted how 2024 would be a "big milestone" for the aviation industry while noting "various changes and innovations shaping the year."
"In contrast to the difficult times we've faced, our valued passengers have rekindled their travel plans and airports buzz with activity. While we celebrate our victory over a significant crisis, a rocky road remains ahead," Cho said in his New Year's message that was posted on the company's employee site on January 2.
In his message, Cho also anticipated "geopolitical risks, global supply chain disruptions, economic slowdowns and prolonged inflation to persist through 2024."
Cargo business slowdown in 2024
He also shared his expectations of "intensified industry competition in regaining market share and a slowdown of the lucrative cargo business."
In light of these uncertainties, Cho urged his colleagues to return to the fundamentals.
"Innovation without a solid foundation is akin to a castle built on sand," Cho said. "We must consistently cultivate and refine our strengths."
Cho also emphasized the importance of continuously rendering customer-centric services.
"Every moment they spend with us is more valuable than ever. To meet their needs, we need to review their journey from start to finish to check for inconveniences and find areas for improvement," he said.
The Korean Air chief then reiterated safety and service as pillars of the airline's business and called on his colleagues to play their respective roles so that Korean Air may "continue its venture in leading the global aviation industry."
In closing his message, Cho mentioned that the pandemic highlighted the value of "people" and recognized the airline's over 20,000 professionals as the core of the business.
"With Korean Air's resilience, strength and expertise accumulated over many years, there is nothing we can't overcome when we put our minds together," the Korean Air chief added.
Korean Air announced earlier in 2023 that the UK had approved its planned business combination with Asiana Airlines on March 1, adding to the jurisdictions that have given their green light on the merger of the two South Korean airlines.
In a statement, Korean Air noted that it now only awaits business competition approvals from the EU, Japan and the US.
The carrier also said in February 2023 that it would continue dialogue with the European Commission following its move to open an in-depth investigation into its proposed acquisition of Asiana Air.
In a release on February 17, 2023, the European Commission raised concerns about the Korean Air-Asiana Air merger reducing competition.
Following the comment from the European Commission, Korean Air is still awaiting business combination approvals from the US and Japan, countries where reporting is mandatory, as well as the final approval from the UK, where reporting is arbitrary.
