Korean Air has completed its acquisition of Asiana Airlines, four years after announcing its decision to purchase the carrier on Nov. 16, 2020. On Dec. 12, Korean Air acquired 131,578,947 newly issued shares of Asiana Airlines, representing a 63.88% ownership stake and making Asiana Airlines a subsidiary of Korean Air.

The completion follows Korean Air’s payment of about $556.4 million to Asiana Airlines on Dec. 11, concluding the share purchase transaction. This brings the total investment to about $1.05 billion.

Korean Air plans to complete the integration with Asiana Airlines within two years, according to an announcement. The integration strategy includes network optimization through diversified flight schedules on overlapping routes, service expansion to new destinations and enhanced safety investments. The merger, said the announcement, aims to strengthen national aviation industry competitiveness, enhance the hub capabilities of Incheon Airport in Seoul and expand global network reach.

The acquisition, said the announcement, represents “a strategic milestone” for Korea’s aviation industry. Korean Air, said the announcement, “will proceed to implement measures to strengthen the country’s aviation capabilities and enhance its competitive position in the global market.”

Image: EQRoy/Shutterstock