Korean targets completion of Asiana Airlines acquisition in ‘pivotal’ 2023

This year, Korean Air anticipates to conclude its acquisition of rival Asiana Airlines, stressing the adversities and rising rivalry that this “crucial” year brings.

On New Year’s Day, Korean Air CEO Walter Cho sent out a statement to his staff that the airline is in its concluding stages of completing an acquisition it announced last year during the pandemic. Receiving Chinese regulatory approvals at the end of 2022 proved extremely advantageous for them and has allowed them to move one step closer towards attaining final authorization from both US and EU authorities.

Cho writes-

“2023 is a pivotal year for completing the huge task of closing our acquisition of Asiana Airlines. We are in the last stage with the remaining overseas competition authorities reviewing the merger.”

Although Cho remains optimistic regarding the resurgence of travel requests, he emphasizes that there are various obstacles ahead. Not only will people need to navigate through rising economic concerns but also fight against increasing doubts.

The airline is thoroughly analyzing the ever-increasing competitive environment of the new year, with Cho inspiring employees to strive for a more in-depth comprehension of customers’ requirements and aligning their services according to customer demands.

The airline head cautioned that the business could face a “demand-recovery paradox” – where its success and profitability reduces, despite industry recovery continuing – if it fails to keep up with advances.

Cho further says-

“There have been numerous challenges on our way, but we’ve always overcome and leveraged them to create new opportunities. We’re armed with more than half a century of experience and will use this insight to address our future.”

This year, the airline has witnessed tremendous success as it maintained its profitability due to an extraordinary cargo performance. Additionally, this SkyTeam carrier has also included new aircrafts in their fleet; at the end of November 2022 they managed to receive their first A321neo out of a total 30 ordered and brought aboard Boeing 737 Max jets for March.

Korean Air is known to be a leader in both innovation and technology, so this acquisition of Asiana Airlines will likely drive the company towards greater success in 2023. Let’s hope that 2023 marks a better, brighter future for the airline industry.

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