Korean Air has announced that it will officially emerge as an integrated flag carrier on December 17, 2026, marking the completion of its long-running consolidation process with Asiana Airlines.
The boards of both airlines approved the merger agreement on May 13, with the formal execution of the contract on May 14.
The integration follows the original share subscription agreement signed between the two airlines in November 2020. Upon completion of the merger, Korean Air will absorb all assets, liabilities, rights, obligations and personnel of Asiana Airlines.
According to the company, the South Korean government and state-led creditors provided KRW 3.6 trillion in liquidity support to Asiana Airlines during the pandemic period to stabilise the country’s aviation sector. Korean Air subsequently oversaw Asiana Airlines’ operational and financial restructuring as part of the acquisition process, including the repayment of public financial support.
Under the approved merger terms, the exchange ratio has been set at one Korean Air share to 0.2736432 Asiana Airlines shares. The ratio was calculated based on Korea’s Capital Markets Act using weighted average market closing prices over multiple trading periods.
Korean Air stated that the transaction is expected to increase its capital by approximately KRW 101.7 billion.
The airline plans to proceed with the merger under Korea’s Commercial Act through a small-scale merger structure. Under this framework, Korean Air’s board approval will replace the need for a shareholder meeting, while Asiana Airlines is expected to hold an extraordinary general meeting in August to formally approve the merger.
To support transparency and governance standards, Korean Air said it implemented guidelines issued by South Korea’s Ministry of Justice regarding director conduct during corporate reorganisations. The airline’s ESG Committee also acted as a special review body, while independent external experts reviewed valuation methodologies and transaction fairness.
Following execution of the merger agreement, Korean Air will submit a formal merger application to South Korea’s Ministry of Land, Infrastructure and Transport (MOLIT).
The airline also plans to apply for amendments to its Operations Specifications (OpSpecs) in June 2026 in order to integrate Asiana Airlines’ aircraft and safety systems under Korean Air’s existing Air Operator Certificate (AOC).
According to the company, additional regulatory filings with international aviation authorities will follow to align operational procedures, safety systems and network management across the combined airline.
Korean Air is also preparing several infrastructure and operational investments to support the expanded airline network.
These include upgrades to airport lounges, in-flight catering and terminal facilities aimed at improving the passenger experience, alongside standardised flight crew training programmes across both airlines.
The company also plans to modernise operational facilities, including the Operations and Customer Center (OCC), Cabin Crew Training Center and Aviation Health and Medical Center to support increased operational capacity.
In the maintenance segment, Korean Air stated that it is expanding its maintenance, repair and overhaul (MRO) infrastructure with a new engine maintenance facility and an expanded Engine Test Cell near Incheon International Airport.
The integration is expected to strengthen Korean Air’s international market presence and further position Incheon International Airport as a major global aviation hub through improved network connectivity and transit efficiency.
The airline also confirmed that it is working with the Korea Fair Trade Commission and other authorities to finalise the integration of the loyalty programmes of both airlines to ensure a seamless transition for passengers.
