Korean Air has finalised its post-merger integration (PMI) plan with Asiana Airlines after receiving approval from the state-run Korea Development Bank (KDB).
The PMI plan had been submitted to the KDB on March 17, five months after Korean Air signed a deal to acquire Asiana’s new shares and perpetual convertible bonds.
For three months, the KDB reviewed the PMI plan and made revisions in consultation with Korean Air, the Ministry of Land, Infrastructure and Transport, and other relevant agencies.
The finalised PMI plan includes integration plans for the airlines’ full-service carriers (FSCs) and low-cost carriers (LCCs), measures to resolve restrictions of holding companies stipulated in the Fair Trade Act, employment retention and succession of collective agreements, and plans to effectively reorganise relevant subsidiaries.
Once the PMI plan has been finalised, Korean Air will proceed to integrate with Asiana after receiving business combination approvals from relevant authorities.
The newly integrated global airline will increase operational efficiency of overlapping passenger and cargo routes, while diversifying its schedules and expanding opportunities for new routes, which will increase customer benefits and create integrated synergy by reducing costs, Korean Air said in a statement.
It added that the integrated FSCs and LCCs are expected to improve efficiency by achieving economies of scale, and will act as an opportunity for the growth of relevant contractors, partners and other companies in the aviation industry.
Korean Air has finalised its post-merger integration (PMI) plan with Asiana Airlines after receiving approval from the state-run Korea Development Bank (KDB).
The PMI plan had been submitted to the KDB on March 17, five months after Korean Air signed a deal to acquire Asiana’s new shares and perpetual convertible bonds.
For three months, the KDB reviewed the PMI plan and made revisions in consultation with Korean Air, the Ministry of Land, Infrastructure and Transport, and other relevant agencies.
The finalised PMI plan includes integration plans for the airlines’ full-service carriers (FSCs) and low-cost carriers (LCCs), measures to resolve restrictions of holding companies stipulated in the Fair Trade Act, employment retention and succession of collective agreements, and plans to effectively reorganise relevant subsidiaries.
Once the PMI plan has been finalised, Korean Air will proceed to integrate with Asiana after receiving business combination approvals from relevant authorities.
The newly integrated global airline will increase operational efficiency of overlapping passenger and cargo routes, while diversifying its schedules and expanding opportunities for new routes, which will increase customer benefits and create integrated synergy by reducing costs, Korean Air said in a statement.
It added that the integrated FSCs and LCCs are expected to improve efficiency by achieving economies of scale, and will act as an opportunity for the growth of relevant contractors, partners and other companies in the aviation industry.