Korean Air-Asiana business combination review delayed… Travel agency business strategy is also incomplete

Integrated planning schedule walking in the fog… Flight schedule is dark
Travel agencies struggle to secure fares and seats, disrupting product composition

As the conclusion of the review on the business combination between Korean Air and Asiana Airlines is delayed, it is expected that travel agencies will have difficulties in establishing business strategies. / Provided by each company

As the decision on the business combination between Korean Air and Asiana Airlines was delayed, the airlineThe travel industry’s establishment of sales strategies is also being hindered. With the expectation of the transition from Corona, it is difficult to take a step from planning flight schedules and setting products right away at the time when overseas travel business is resumed.

Initially, Korean Air planned to obtain approval for the business combination from domestic and competition authorities within the year. However, as of the end of October, the domestic Fair Trade Commission has not yet received approval, so the airline industry believes that the review results of overseas competition authorities are highly likely to be delayed. Until now, business combinations have been approved in Turkey, Taiwan, and Malaysia, but large mountains such as the EU, the United States, China and Japan remain.

While the prospect that the merger of the two companies would pass by the end of the year prevailed, the industry also expressed frustration. One of the visible changes in the process of integration between the two companies is the redundancy of routes. As the integrated schedule walks in the fog, it becomes difficult to actively establish route strategies. Travel agencies also expressed displeasure. The next step for setting travel products, such as fares and seat reservations, is only possible after the flight schedule is available, as it is currently difficult to make a variety of products using domestic airlines. An official from a travel agency said, “At the time when the overseas travel market is starting to gain momentum, the key to lead this is air supply, but the uncertainty of the supply plan is limiting the establishment of business strategies. The judging will proceed.”

Meanwhile, Korean Air is waiting for approval by cooperating with competition authorities in other mandatory reporting countries, such as the United States, EU, China, and Japan, in addition to Korea.

By Son Go-eun, staff reporter [email protected]

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