South Korea’s Biggest Airlines Planning to Merge

Korean Air Lines Co. plans to acquire Asiana Airlines Inc. for 1.8 trillion won ($1.6 billion) following an interjection via its parent, Hanjin Kal Corp.

“The main goal of the acquisition is to stabilize South Korea’s aviation industry amid the coronavirus pandemic and improve its competitiveness,” said Hanjin Group, which operates airlines and logistics businesses through its subsidiaries.

Hanjin Group expects Korean Air to be ranked as one of the world’s top 10 airlines once the deal closes. Both airlines’ share prices soared on Monday after the announcement, with Asiana’s shares rising to just under 30%, while Korean Air closed with a gain of over 12%.

Read Bloomberg’s full article here.