Alphabet Stock Slides as Google AI Pioneer Jeff Dean Exits to Launch Discovery Loop 
S&P 500, Nasdaq Slip as Oil Jumps on Iran Tensions 
South Korean Won Leads Asian FX Losses as Dollar Rises 
China Inflation Cools in July as CPI Misses Forecast, PPI Deflation Eases 
US Dollar Falls as Weak July Jobs Report Dents Fed Rate Hike Bets 
US Dollar Gains as Iran Tensions, Fed Rate Hike Bets Rise 
AMP Shares Surge 13% After Strong Profit and A$150 Million Buyback 
UK Retail Sales Rise as World Cup and Heatwave Boost Food, Pubs and Clothing 
Goldman Sachs Sees US Stock Buybacks Outpacing Equity Issuance as AI Funding Rises 
Moderna Wins FDA Approval for mFLUSIVA mRNA Flu Vaccine for Adults 50+ 
Treasury Wine Estates Shares Jump as U.S. Overhaul Lifts FY2026 Outlook 
England Drought Expands to 71% as Heatwave Deepens Water Crisis 
Oil Prices Rise as Hormuz Reopening Remains Uncertain 
Gold Prices Rise as Fed Rate Hike Bets Ease 
Deutsche Bank Upgrades Persimmon to Buy After Strong First-Half Results 
Delta Flight Makes Emergency Landing in Atlanta After Cockpit Fumes Reported 
S&P 500, Nasdaq Futures Rise as Iran Risks and CPI Loom 
Korean Air is set to acquire Asiana Airlines, its long-time rival carrier, and if the acquisition will not encounter issues and push through, it was reported that the former may have to spend an additional ₩600 billion or $524 million in the next two years.
Why Korean Air may have to spend more on the acquisition
According to The Korea Herald, new data stated that Korean Air will have to squeeze out more than half a billion dollars to complete its purchase. Based on the information that was gathered by lawmaker Park Sang Hyuk, the largest airline and flag carrier of Korea may have to foot a total bill of about ₩2.4 trillion for the purchase and post-merger works as the companies go through the integration process, which is estimated to take two years to complete.
It was explained that the plan is for Korean Air to combine its booking and ticketing systems with Asiana’s. The latter’s customer database must be integrated with Korean Air’s as well. Mostly, the additional budget will be spent on the post-merger works, especially in the IT integration process.
Moreover, the crew, including the flight attendants of the two airlines, will not work together under a new system, so all of them are set to undergo new training. It was reported that Korean Air already shelled out ₩1 trillion as part of its ₩1.8 trillion Asiana Airlines acquisition deal.
Post-merger plans
Apparently, Korean Air has yet to pay the remaining ₩800 billion, and earlier this year, it was reported that it was able to raise ₩3.3 trillion by issuing new shares. The money will be used to help pay for the purchase of Asiana Airlines.
Woo Ki Hong, the Korean Air chief executive officer, vowed not to force restructuring after the merge. Rather, the two airlines are expected to create a synergy and churn out around 300 or 400 billion won per year as the travel industry recovers from the COVID-19 pandemic.
Korea Joongang Daily reported earlier this month that Korean Air also reached an agreement with the Korea Development Bank (KDB) with regards to how it will incorporate Asiana into its business operations.
It was learned that Korean Air submitted its post-merger plan to the KDB in March, and it was requested to make some revisions and were approved by the bank last week. It includes employment, ticket prices, and other integration plans after the full merger.
