In November 2020, the airline industry witnessed the start of one of the most significant mergers in aviation history with Korean Air’s announcement to acquire Asiana Airlines. This merger, valued at $1.6 billion, was projected to elevate Korean Air from being the 18th largest airline globally to the 10th largest upon completion. After more than four years of negotiations and adjustments, including the divestment of Asiana’s cargo operations and the transfer of certain European routes to T’Way Air, the merger has finally reached the finish line.

Despite the deal being initially driven by the financial pressures of the pandemic, the consolidation of these two airlines addresses the long-standing sustainability challenges in a market saturated with competition from both domestic low-cost carriers and international airlines. With Korean Air poised to absorb Asiana Airlines, the transition marks the phasing out of Asiana’s brand while integrating Asiana’s aircraft into Korean Air’s fleet modernization plans. As the two iconic names move towards complete integration under the Korean Air brand, the withdrawal from the Star Alliance also signifies strategic realignment with SkyTeam, to the benefit of partners like Delta Air Lines.

Asiana Airlines Merging with Korean Air

Our Take

While the merger poses a reduction in competition within South Korea, for frequent flyers, the outcome could be a double-edged sword. On one hand, there’s potential for streamlined operations and an enhanced route network with stronger SkyTeam partnerships, which could mean improved loyalty benefits and a more robust points earning trajectory for travelers. Conversely, the dissolution of Asiana may lead to fewer choices and potentially higher fares on certain routes.

The real game-changer could be in how strategically travelers adapt to the changes. With the combined airline potentially offering a more expansive global reach and modern aircraft following fleet updates, passengers using points and miles might find it advantageous to leverage the enhanced Korean Air network for maximizing value, especially in alliance with Delta’s operations through the Seoul Incheon hub.