Korean Air Co. said Friday that its analysis of post-merger integration (PMI) strategy estimates the cost of absorbing Asiana Airlines Inc. at up to 1 trillion won. The flag carrier presented the figures during an investor relations session in Seoul.
“We expect the synergy effects could exceed the results of the PMI analysis,” Park Hee-don, a senior vice president at Korean Air, told investors. “If things go well, we believe the integration costs could be fully offset sometime between the end of 2028 and early 2029.”
The airline projects annual synergy effects from the merger at approximately 300 billion won. Korean Air plans to complete the formal launch of the combined carrier by Dec. 17, with a goal of operating 230 aircraft and generating 23 trillion won in annual revenue. The combined entity would rank among the world’s 10 largest airlines, according to the company.
Asked about the integration of the two airlines’ frequent-flier mileage programs, Korean Air said it hopes the process can be finalized without delay ahead of its shareholders’ meeting scheduled for August. The airline did not provide further details on the timeline for unifying the loyalty programs.