Two Airlines Fined $8.7 Million for Breaching Merger Conditions

Korean Air and Asiana Airlines have been fined ₩12.1 billion (approximately $8.7 million) by South Korea's Fair Trade Commission (KFTC) for violating the terms set during their merger. This fine, imposed on August 3, 2025, marks the largest penalty ever handed down by the KFTC in the aviation sector.

The merger between the two airlines was completed in December 2024, with Korean Air acquiring a majority stake in Asiana Airlines as part of a strategic consolidation in South Korea's aviation industry. The merger was subject to strict conditions to prevent anti-competitive practices, including maintaining service levels and fair pricing.

However, KFTC investigations revealed that the airlines exceeded fare increase limits on several key routes, including Incheon to Barcelona and Frankfurt. Business class fares on these routes rose between 8.4 and 28.2 percent, far above the agreed-upon caps. The airlines also failed to meet other commitments for service quality and seat availability.

In response, the KFTC has emphasized the importance of adhering to merger conditions to protect competition within the airline industry. Korean Air and Asiana are now working to adjust their pricing and loyalty program structures in line with the Commission's demands. This move is expected to have long-term implications for airline mergers and the regulatory landscape surrounding them.

Earlier, the US DOT ordered restrictions for Mexican Airlines, and threatened more.

Cover photo by Yu Kato on Unsplash