U.S. weighs suit against Korean Air's planned acquisition of Asiana: report

SEOUL, May 19 (Yonhap) -- The U.S. government is considering suing to block South Korean national flag carrier Korean Air Co.'s planned acquisition of its smaller domestic rival Asiana Airlines Inc. due to competition reasons, a news report has said.

The two Korean airlines' planned merger may harm competition on passenger and cargo traffic between South Korea and the United States, according to U.S. news website Politico.

If the U.S. Justice Department sues, it would be the Biden government's third attempt to impede what it believes to be monopolistic practices in the airline sector, after suits against the merger between JetBlue Airways Corp. and Spirit Airlines Inc., and an alliance between JetBlue and American Airlines Group, the report said.

It would also be the first time the U.S. has sought to thwart a merger between foreign airlines.

In 2021, Korean Air submitted documents to antitrust regulators in 14 countries for the review of its combination with Asiana.

The company has received approval from 11 countries, including Britain, Australia, Singapore, Vietnam, Turkey and China, and is awaiting a decision from Japan, the European Union and the U.S.

kyongae.choi@yna.co.kr
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