Korean Air’s acquisition of Asiana Airlines

Appointment of Monitoring Trustee and the overview of Open Slot Commitment 

A translated version of this page has been provided below.

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:

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 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 Passenger Commitments, the Parties will offer the 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”).

This notice is to inform third parties who are interested in obtaining the slots through the Open Slot Commitment:

  • Specifics of the Open Slot Commitment (including the routes, the number of slots, and the process, etc), a final version, will be announced around February 2025 through the slot coordinators in Japan and Republic of Korea and via the Evelyn Partners LLP website.
  • Please check this website regularly.

Routes, Number of Slots, etc 

The routes and number of slots to be offered under the Open Slot Commitment would be as shown in the table below:

RouteNumber of slots
Osaka-Seoul21 (IATA Summer and Winter Seasons)
Fukuoka-Seoul14 (IATA Summer and Winter Seasons)
  • Please note the information in the above table are subject to change
  • Depending on future developments, the following routes may also be subject to the Open Slot Commitment in addition to the two routes mentioned above: 1. Nagoya-Seoul; 2. Sapporo-Seoul; 3. Osaka-Busan; 4. Sapporo-Busan; and 5. Fukuoka-Busan.
  • At present, the Open Slot Commitment is planned to be implemented for the IATA 2025/26 Winter season and 2026 Summer season, but may be extended to subsequent seasons.

Process

Those who wish to obtain slot(s) through the Open Slot Commitment (“Open Slot Applicant”) must also apply for the slot(s) in accordance with the IATA General Slot Allocation Procedure.

The Monitoring Trustee will review the suitability of the Open Slot Applicant. The criteria for such 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.

In a case where two or more applicants compete for obtaining slots on the same routes, the following elements will be considered in the review:

  • 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.

Ancillary agreements to complement applicants’ competitiveness

In some cases, a successful Open Slot Applicant may be able to 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.

Obligations of a successful Open Slot Applicant

A successful Open Slot Applicant will enter into a contract with the Parties and assume certain obligations, including the following:

  1. 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.
  2. 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.
  3. 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.
  4. If a successful Open Slot Applicant does not comply with the above items 1-3 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.

For inquiries regarding this notice, 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: KEOZ.Trustee@evelyn.com; nasoul.gopal@evelyn.com and michel.alexander@evelyn.com 
W: Monitoring trustee services | Evelyn Partners