KUALA LUMPUR: The Malaysian Aviation Commission (MAVCOM) today announced that it has approved the merger between Korean Air Lines Co, Ltd. (Korean Air Lines) and Asiana Airlines, Inc (Asiana Airlines).

       As the merger involves the air passenger services between South Korea and Malaysia, Korean Air Lines and Asiana Airlines submitted a voluntary notification and application of an anticipated merger to MAVCOM on March 19, 2021.

       The regulator noted that the anticipated merger constitutes a "failing firm defence” merger.

       "Asiana Airlines has been in a situation of financial distress for some time and cannot be rehabilitated but for the anticipated merger.

       "Upon thorough review of the application, MAVCOM decided that the merger does not infringe section 54 of the Malaysian Aviation Commission Act 2015 [Act 771], which prohibits any merger that results in the substantial lessening of competition (SLC) of the aviation industry,” it said in a statement today.

       MAVCOM said this decision is the first competition-related merger case to be analysed by any competition authority or sector regulator in Malaysia. - Bernama