Korean Air’s acquisition of Asiana Airlines

A translated version of this page has been provided below. 

• Japanese translation 
• Korean translation 

Appointment of JFTC Monitoring Trustee

The JFTC’s decision on the acquisition of Asiana Airlines Inc. by Korean Air Co., Ltd. 

The Japan Federal Trade Commission (the “JFTC”) reviewed the proposed acquisition of Asiana Airlines Inc. (“Asiana Airlines” headquartered in Republic of Korea) by Korean Air Co., Ltd (“Korean Air” headquartered in Republic of Korea). Asiana Airlines and Korean Air are referred to as “the Parties”. On 31 January 2024, the JFTC notified the Parties that it would not issue a cease and desist order.

As a result of the JFTC’s review, based on the premise that the Parties will implement their proposed remedies, the JFTC concluded that the acquisition would not substantially restrain competition in any particular fields of trade.

You can access the JFTC’s decision and the detail of the remedies on the following website:

• (Japanese) https://www.jftc.go.jp/houdou/pressrelease/2024/jan/240131_kiketsu_daikan.html
• (English) https://www.jftc.go.jp/en/pressreleases/yearly-2024/January/240131.html. 

Appointment of the JFTC Monitoring Trustee

Evelyn Partners LLP has been appointed as the Monitoring Trustee for the purpose of monitoring the implementation of (a) the JFTC Passenger Commitments (including the Open Slot Commitment); and (b) a part of the Cargo Commitments (i.e. Block Space Agreement) offered by Korean Air to the JFTC.

Overview of the Open Slot Commitment

Overview

Pursuant to the JFTC Passenger Commitments, the Parties shall offer slot divestment to unspecified international air passenger carrier(s) and will accept the request from potential remedy takers (hereinafter referred to as the “Open Slot Commitment”).

The Open Slot Commitment is in addition to the Slot Transfer Commitment under which the Parties shall divest slot to three specified remedy takers: Eastar Jet Co., Ltd. T'way Air Co., Ltd. and Peach Aviation Ltd (each a “Slot Transferee”),   

Please note that this publication relates to IATA Winter Season 2025/26 only. 

We will publish information relating to slot availability for IATA Summer 2026 separately later in 2025. 

Slot availability for IATA Winter Season 2025/26  

The Monitoring Trustee is inviting slot applications for IATA Winter Season 2025/26 on the following routes: 

Please note that slots on the Sapporo-Busan route shall only become available under the Open Slot Commitments if the relevant Slot Transferee under the Slot Transfer Commitments obtains slots on the Sapporo-Busan route under the IATA General Slot Application Procedure.

Therefore, while we invite applications for slots on each of the above routes, it may be the case that no slots are ultimately available on the Sapporo-Busan route.

Whether Sapporo-Busan slots shall be available under the Open Slot Commitment will be confirmed following the publication of the IATA Slot Allocation List (5 June 2025 for IATA Winter Season 2025/26).  

An applicant wishing to obtain slots on the Sapporo-Busan route. for IATA Winter Season 2025/26 must meet the procedural deadlines prior to 5 June 2025.

We invite applicants to take note of the key dates set out below (See section Key Dates for the IATA Winter 2025/26 process). 

Prioritisation criteria

In the event that the Slot Transferee that is entitled to obtain slots from that route under the Slot Transfer Commitment applies under the Open Slot Commitment, its application shall take priority over any applications from unspecified carriers (“Open Slot Applicants”). Peach Aviation shall have priority for the Osaka-Seoul route, Eastar Jet shall have priority for the Fukuoka-Seoul route and T’way Air shall have priority for the Sapporo-Busan route. To the extent that slots remain following the Slot Transferees application these shall be available to unspecified carriers.

In the event that the Slot Transferee for the relevant Open Slot Route does not apply (or there are remaining slots after its application) and there are multiple applications Open Slot Applicant the Monitoring Trustee shall:

• Review the suitability of the Open Slot Applicant. The criteria for this review includes:
  • operating capabilities on the routes;
  • existing network, business plans;
  • financial position; and
  • the situation of slots the Open Slot Applicant already operates on that route.
• Prioritise eligible Open Slot Applicants by reference to the following:
  • the number of slots that an applicant wants to obtain;
  • whether the applicant is a new entrant or existing operator;
  • market conditions;
  • applicant’s financial status;  
  • the number of seats to be offered that each applicant plans to operate on that route; and
  • any other conditions that the Monitoring Trustee deems appropriate.

Carriers wishing to obtain slots under the Open Slot Method must also apply for the slot(s) in accordance with the IATA General Slot Allocation Procedure. 

Obligations of a successful Open Slot Applicant

A carrier that obtains slots under the Open Slot Commitment will enter into a contract with the Parties and assume certain obligations, including the following:

• To use all the Transferred Slots for its operation on the designated routes for at least three years commencing from the date of such transfer.
• Not to use the Transferred Slots for any routes other than for the designated routes for at least three years commencing from the date of such transfer.
• Not to transfer, assign or otherwise provide the Transferred Slots to any third party (including the Parties and their affiliated companies) nor exchange the Transferred Slots with such third party for at least three years commencing from the date of such transfer.
• If a successful Open Slot Applicant does not comply with the above requirements and such non-compliance is not rectified within a reasonable period specified in the notice requiring such rectification from Korean Air, Korean Air may report such non-compliance to the JFTC or the Monitoring Trustee and request the successful Open Slot Applicant to return the Transferred
• Slots to the slot pool of the relevant airport. In such case, the successful Open Slot Applicant shall return the Transferred Slots to the slot pool of the relevant airport. 

These obligations shall be contained within the Slot Transfer Agreement with the Parties. 

Key Dates for the IATA Winter Season 2025/26 process 

• 27 March 2025 - Application Deadline
• By 1 May 2025 – Monitoring Trustee to review all application forms and seek approval from the JFTC, Monitoring Trustee to invite business plans from eligible Open Slot Applicants.
• 8 May 2025 - The Parties to confirm which slots it will release.
• 15 May 2025 - Initial Submission Deadline / business plan submission deadline.
• By 5 June 2025 – Slot Allocation List Deadline.
• By 10 July 2025 – Monitoring Trustee to inform successful Open Slot Applicant(s) of entitlement under the Open Slot Commitment.  
• By 31 July 2025 – Finalisation of Slot Release Agreement between successful Open Slot Applicant(s) and Korean Air.
• 26 October 2025 – Start of IATA Winter Season 2025/26.

Ancillary agreements to complement applicants’ competitiveness 

A successful Open Slot Applicant may request the Parties to enter into the following ancillary agreements:

• Interline agreement;
• Special prorate agreement;
• Lounge access agreement;
• Ground handling agreement; and
• Agreement for fuelling support.

In the event that a request relates to facilities not owned by the Parties and/or services not offered by the Parties, the Parties shall undertake best efforts to assist the Open Slot Transferee in obtaining reasonable access to such facilities or services.

Application Form and Contact 

The Application Form is available on request. 

The deadline for submission of application forms to the Monitoring Trustee is 27 March 2025.

For inquiries regarding the application process please contact the following: 

Evelyn Partners LLP
45 Gresham Street
London EC2V 7BG
United Kingdom

T: +44 20 7131 4865 / + 44 7824 417 630
F: +44 20 7131 4001
E: keslotprocess@evelynps.com ; nasoul.gopal@evelynps.com and michel.alexander@evelynps.com 
W: Monitoring trustee services | Evelyn Partners