![](https://www.pymnts.com/wp-content/uploads/2020/04/shutterstock_1048379746-e1632251169972.jpg)
South Korea’s antitrust watchdog has approved low-cost airline Jeju Air’s takeover of the management of struggling Eastar Jet, officials said Thursday, April 23.
Early last month, Jeju Air signed a deal with Eastar Holdings, the largest shareholder of Eastar Jet, to acquire the airline for 54.5 billion won (US$45 million). The firm acquired 4,971,000 common shares for a 51.17% stake.
“The Fair Trade Commission conducted the review as promptly as possible, considering the circumstances of the airline industry suffering from the aftermath of the pandemic,” the KFTC stated.
As a result of the review, Eastar Jet was recognized as an “unrecoverable company” under the Fair Trade Act and was granted an exception to the restriction on competition.
From a competitive perspective, it was considered to be better to approve the tie-up to continue to use Easter Jet’s assets than to remove the airline, which is not possible to revive, the authorities said.
“Under these circumstances, it was considered to be difficult to repay outstanding debts amounting to 115.2 billion won at the end of March 2020, including aircraft lease fees, airport fees, air oil purchase costs and wages. Its tangible assets were only 45 billion won at the end of 2019,” the KFTC stated.
Full Content: Korea Herald
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Canadian Breadmakers Settle Price-Fixing Lawsuit
Jul 25, 2024 by
CPI
EssilorLuxottica Open to Meta as Shareholder, Says CEO Francesco Milleri
Jul 25, 2024 by
CPI
California Supreme Court Upholds Proposition 22, Securing Independent Contractor Status for Uber and Lyft Drivers
Jul 25, 2024 by
CPI
Paramount Global Investor Sues to Block Skydance Media Merger
Jul 25, 2024 by
CPI
Software Vendors Win Class Action Status in Antitrust Case Against CDK Global
Jul 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – International Trade & Antitrust
Jul 26, 2024 by
CPI
What is Wrong with the WTO Discipline on Subsidies?
Jul 26, 2024 by
CPI
The Abiding Tension Between Trade Remedy Law and Antitrust
Jul 26, 2024 by
CPI
Trade and Antitrust: An End to Isolationism
Jul 26, 2024 by
CPI
International Trade Law and Domestic Regulation of Generative Artificial Intelligence: Divergent Approaches?
Jul 26, 2024 by
CPI