Korean Air Estimates Asiana Merger Integration Costs at 900 Billion to 1 Trillion Won

Korean Air Co. said Friday that costs to integrate Asiana Airlines Inc. 02 million. During an investor relations session in Seoul, the airline estimated post-merger integration expenses between 900 billion won and 1 trillion won.

It projected annual synergy effects from the merger at around 300 billion won. Park Hee-don, senior vice president at Korean Air, said synergy effects could exceed the PMI analysis results. He added that integration costs could be fully offset between the end of 2028 and early 2029 if things go well.

The airline plans to complete the launch of the integrated carrier by December 17. Its post-merger targets include operating 230 aircraft and generating 23 trillion won in annual revenue. Korean Air said it hopes to finalize integration of the two airlines' mileage programs ahead of its shareholders' meeting scheduled for August.