Korean Air, Asiana to integrate overlapping businesses

With Korean Air and Asiana Airlines having overlapping businesses, the focus of the merger plans is on how the two companies can integrate efficiently.

Hanjin Group, Korean Air's parent company, plans to run a separate company to control the two's low-cost carrier (LCC) subsidiaries, including Jin Air, Air Busan, and Air Seoul.

The new company's establishment is subject to a monopoly review by the country's Fair Trade Commission.

When the two full-service carriers complete their merger, Hanjin will have 315 aircraft under its control, accounting for 76.5 percent of the 412 aircraft run by Korean carriers.

This means the merged firm's maintenance, repair, and operation (MRO) division should be capable of maintaining the increased number of airplanes.

Speculations have been growing that Korean Air may integrate the MRO divisions of the two companies and spin it off.