South Korea will support smaller airlines and monitor market competitiveness after dominant carrier Korean Air completed a $1.3 billion acquisition of Asiana Airlines on Thursday to create one of Asia's biggest carriers.

Korean Air said on Thursday it had completed its protracted purchase of South Korean rival Asiana Airlines, making it one of Asia's biggest carriers. The 1.8 trillion won ($1.3 billion) deal, the longest-ever merger to complete between airlines,

Find out about the mega-merger between Korean Air and Asiana Airlines and its implications for the global airline industry.

Korean Air will absorb Asiana after a two-year post-merger integration (PMI) process, while its budget carrier unit Jin Air Co. will absorb Asiana's low-cost units Air Seoul Inc. and Air Busan Co., a company spokesperson said by phone.

Korea's only dedicated cargo airline Air Incheon is preparing to launch a unified operation next July following its acquisition of Asiana Airlines' cargo division with Kim Kwan-sik appointed CEO to lead the effort.

Surprisingly, American Airlines operates just one route to South Korea, connecting Seoul Incheon International Airport (ICN) with its hub at Dallas/Fort Worth International Airport (DFW). On this route, the oneworld carrier competes with Korean Air.

Korean Air said it had completed the payment of a total of 1.5 trillion won for a 63.88% stake in Asiana.

With the acquisition of a 63.88 percent stake, Korean Air said it had invested 1.5 trillion won in the merger, "making Asiana Airlines a subsidiary" of the company. The move will create Asia's second-biggest airline group based on capacity, after Singapore Air, and the 10th-largest globally, according to Bloomberg News.

Korean Air has completed the acquisition of compatriot Asiana Airlines, after successfully netting a 63.88% ownership stake in the latter.

Korean Air, South Korea's biggest airline, has successfully integrated local rival Asiana Airlines as a subsidiary, wrapping up a years-long acquisition process, the company said on Thursday.

The 1.8-trillion-won ($1.3 billion) M&A deal, which stands as one of the longest to completion in the sector, was first unveiled four years ago by South Korea's largest carrier to rescue Asiana, grappling with a plunge in demand during the COVID-19 pandemic.

Photo Credit: Thiago B Trvisan/Shutterstock Korean Airlines has completed its acquisition of Asiana, South Korea's second-largest carrier. The $1.3 billion deal, which gives Korean a 64% stake in Asiana, came four years after the airlines reached a ...