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PETALING JAYA: The Malaysian Aviation Commission (Mavcom) announced that it has approved the merger between Korean Air Lines Co, Ltd and Asiana Airlines, Inc.

As the merger involves the air passenger services between South Korea and Malaysia, Korean Air Lines and Asiana Airlines submitted a voluntary notification and application of an anticipated merger to Mavcom on March 19, 2021.

The regulator noted that the anticipated merger constituted a “failing firm defence” merger.

“Asiana Airlines has been in a situation of financial distress for some time and cannot be rehabilitated but for the anticipated merger.

“Upon thorough review of the application, Mavcom decided that the merger does not infringe section 54 of the Malaysian Aviation Commission Act 2015 [Act 771], which prohibits any merger that results in the substantial lessening of competition of the aviation industry,” it said in a statement.

Mavcom said the decision was the first competition-related merger case to be analysed by any competition authority or sector regulator in Malaysia.

“Our approval of the merger takes into full consideration the information and feedback presented by all parties and the commission’s own research,” Mavcom executive chairman Datuk Seri Saripuddin Kasim said. ― Bernama


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