On July 11, the Asiana Airlines Pilots’ Union and the Asiana Airlines Union held a press conference at the Korean Confederation of Trade Unions in Jung-gu, Seoul, to voice their opposition to the proposed merger between Asiana Airlines and Korean Air. The unions demanded that the Korea Development Bank (KDB) and the European Commission (EC) reconsider the merger from scratch, citing concerns over job security, service quality, and potential monopolistic practices.
The unions’ escalation in action was triggered by the recent selection of Air Incheon as the preferred bidder for the sale of Asiana Airlines’ cargo business unit. Approximately 800 employees are expected to move to Air Incheon if the cargo business unit is acquired. Choi Do-sung, chairman of the Pilots’ Union, stated, “A total of 11 medium and large cargo aircraft are being sold to Air Incheon, which has no experience in long-haul cargo transportation.” He further added, “Asiana Airlines’ cargo aircraft have an average age of 26.6 years and require continuous investment, raising doubts about Air Incheon’s sustainability.”
Within Asiana Airlines, there is widespread anxiety over the treatment of employees moving to Air Incheon and the future of employees post-merger. There are also rumors that some Asiana Airlines employees may be assigned to subsidiaries such as low-cost carriers (LCCs) after the merger. The Pilots’ Union revealed that they had requested discussions on employment and treatment with Korean Air’s labor-management cooperation team three times this year, but Korean Air did not respond.
The Pilots’ Union has also played the ‘mass resignation’ card. The EC approved the merger on the condition that Asiana Airlines’ cargo business unit be sold, but if the cargo pilots do not transfer, the sale could fall through, failing to meet the EC’s approval conditions. According to the Pilots’ Union, out of the 250 pilots targeted for transfer to Air Incheon, 200 are union members, and over 100 have submitted conditional resignation letters since July 1.
The union argued that the merger could lead to fare increases and a decline in service quality due to monopolistic practices. In response, Korean Air stated, “The global aviation market operates under perfect competition, making monopolies impossible, and most slot transfers have been made to domestic LCCs.” The airline also emphasized, “There will be no artificial restructuring, and we are negotiating to prioritize the employment and working conditions of employees transferring to Air Incheon.”
The merger between Korean Air and Asiana Airlines has received approval or conditional approval from 13 out of 14 countries over the past four years. Despite this, the unions announced that they would file a complaint against Asiana Airlines CEO Won Yoo-seok for breach of trust. They claimed that two A350 aircraft that were supposed to be introduced to Asiana Airlines by the end of this year had been transferred to Korean Air.
An aviation industry official commented on the situation, stating, “Realistically, there is no way to revive Asiana Airlines other than through the Korean Air acquisition, and with the merger process nearly complete, it will be difficult for the union to actually derail the merger.”
The history of Korean Air and Asiana Airlines as the two largest airlines in South Korea, along with the economic and strategic importance of the merger, underscores the significance of this development. The Korea Development Bank’s role in the restructuring and financial support of Asiana Airlines, as well as the European Commission’s involvement in approving the merger, are critical factors in this complex scenario.