EU: Korean Air-Asiana deal may hurt competition

EU antitrust regulators are investigating Korean Air Lines’ bid for Asiana Airlines as it could reduce competition in passenger and air cargo transport services between Europe and South Korea.

The two South Korean airlines are strong and close competitors,

Under the proposed acquisition, Korean Air would become the top shareholder of indebted Asiana.

The four European routers affected are Barcelona, Frankfurt, Paris, and Rome.

Korean Air vowed to submit remedies to concerns of the European Commission about the merger.

The EU watchdog will decide by July 5 whether to clear or block the deal. The deadline can be extended depending on whether the companies offer remedies to address the EU concerns.