Korean Air Lines Co., Ltd. : Korean Air Lines : No Collusion On Incheon-Ulan Bator Route
05/28/2012| 08:57pm US/Eastern
Korean Air Lines Co. (003490.SE) said Tuesday it isn't involved in any collusion with Miat Mongolian Airlines on the Incheon-Ulan Bator route, refuting allegations by the South Korean antitrust regulator.
South Korea's Fair Trade Commission Monday ordered the two airlines to correct unfair practices on the route, saying they have been colluding since late 2005 to prevent competitors from serving the route between the two cities in South Korea and Mongolia.
"In a move to influence talks on aviation between the two countries, Korean Air has offered incentives, including trip costs, for Mongolian government officials in charge of aviation talks with Korea, their families and relatives," Yoon Soo-hyun, director of the FTC's International Cartel Division, said.
As a result, South Korea hasn't been able to get Mongolia to agree to allow other airlines such as Asiana Airlines Inc. (020560.SE) to start flying on the Incheon-Ulan Bator route, the FTC said.
"The failure of the bilateral aviation talks is due to differences in position of the two governments," not due to the intervention of an airline, South Korea's flag carrier said in a statement.
-By Kyong-Ae Choi, Dow Jones Newswires; 822-3700-1903; firstname.lastname@example.org