Australia has cleared Korean Air’s planned acquisition of compatriot Asiana Airlines. After market consultation with interested parties, the Australia Competition and Consumer Commission (ACCC) was satisfied that there is likely to be effective competition on direct flights between Sydney and Seoul, Korean Air said in a statement on 1 September. Qantas and Jetstar will shortly commence service on the sector, which is currently served only by Korean Air and Asiana Airlines. “Korean Air expects the Australian competition authority’s clearance to facilitate and expedite the remaining approval processes,” the flag carrier states. Providing an update of regulatory approvals for the acquisition, Korean Air says that since it submitted business combination reports on 14 January 2021 to nine countries that require reporting, it has received approval from South Korea, Turkey, Taiwan, and Vietnam. Thailand’s Trade Competition Commission stated that the submission was not necessary. In jurisdictions where reporting is arbitrary, Singapore and Malaysia have given the go-ahead while the Philippines stated that a submission was not necessary. The flag carrier states: “In order to finalise the acquisition process, Korean Air will continue to proactively communicate and cooperate with the remaining regulatory bodies where reporting is required, including the United States, the European Union, China and Japan, as well as the United Kingdom, where reporting is arbitrary.” Korean Air hopes to complete the acquisition by 30 September, having sought multiple three-month extensions from the initial end-2021 target.

German pilot union Vereinigung Cockpit (VC) has called industrial action at Lufthansa’s mainline and cargo operation on 2 September. The union says that no agreement was reached during the latest talks with the group on 30 August. In addition to compensation for real-terms wage losses, the union demands a "future-proof solution" for the remuneration structure across all affected pilots, says VC head of collective bargaining policy Marcel Grols. "In order to avoid industrial action, Lufthansa must present a significantly improved offer," Grols states, adding: "We are too far apart at the moment." Lufthansa says it offered VC basic monthly pay increases between 5% for captains at top salary grade and 18% for entry-level first officers for an 18-month period. The union's demands, Lufthansa asserts, include a 5.5% pay rise for the second half of this year and from January 2023 further increases above inflation. With additional demands for a new pay scale with higher base salaries and other benefits, Lufthansa estimates its cockpit payroll costs would grow "probably more than 40 percent" over the next two years. "Even without taking the financial consequences of the Covid crisis into account, this is not acceptable," the airline says. Beyond its proposed pay rises, Lufthansa says it is offering VC an opportunity to "jointly conclude a new perspective agreement" which would guarantee minimum fleet sizes for the mainline and cargo operation. Chief human resources officer Michael Niggemann states: "We cannot understand VC's call for a strike. The management has made a very good and socially balanced offer – despite the continuing burdens of the Covid crisis and uncertain prospects for the global economy." Lufthansa predicts a major disruption to its schedule on 2 September. Some 800 flights have been cancelled from the carrier's Frankfurt and Munich hubs. It warns that a number of flights may be cancelled today and on 3 and 4 September.

Air France-KLM would examine taking an ownership stake in Italian carrier ITA Airways should its joint bid with US investment fund Certares and airline Delta be successful. It follows the granting to the consortium of exclusive negotiations over a controlling stake in the company, which was formed as a successor to bankrupt legacy airline Alitalia. Welcoming the decision, Air France-KLM comments that an agreement would see it become a commercial and operational partner of ITA, although not yet an investor in its capital structure. “However, Air France-KLM Group could consider in the medium term to take a minority stake in ITA,” it states. Air France-KLM has had a lengthy relationship with ITA and before that Alitalia. The new airline was quickly welcomed into the SkyTeam alliance, of which AF-KLM and Delta are key members, with the parties rapidly establishing codeshare agreements. “Air France-KLM would like to thank the Italian government for its consideration throughout the bidding process, during which Certares, Air France-KLM and Delta Air Lines notably emphasized the strong commercial opportunities this deal would bring ITA subject to obtaining all relevant approvals,” it comments. “This includes an increased presence on the North Atlantic axis, on which Air France-KLM, Delta and Virgin Atlantic operate the largest joint venture, as well as the opportunity to build an exclusive partnership between Air France-KLM’s Flying Blue, Delta’s Sky Miles and ITA’s Volare – one of Italy’s largest frequent flyer programmes - to the benefit of the Italian carrier’s customers.”