Korean Air plans to lease some freighters to T'way Air

The EU Commission and the US Department of Justice have raised concerns about the planned merger of Korean Air and Asiana Airlines. Now the former carrier has suggested that some cargo planes could be leased to competitor T'way Air. 

Korean Air and Asiana Airlines have a very large market share in cargo traffic between South Korea and Europe and the USA. One can almost speak of a kind of duopoly. The EU Commission, among others, fears that the merger could result in a monopoly position and consequently in rising freight rates. 

Now Korean Air is trying to allay concerns and has suggested that T'way Air, which is not yet in the full-carrier business, could lease some cargo planes. This would create more competition and the merger candidates hope that the authorities will then give the green light. 

However, South Korean banks are already preparing for the fact that the planned merger could burst. A kind of catch-all solution for Asiana Airlines is to be created. However, one still hopes that the EU and the USA will give the green light.