South Korea's largest airline, Korean Air, is to buy its domestic rival, Asiana Airlines, for approximately 1.8 trillion won (about $1.46 billion), its parent company Hanjin KAL announced Monday.

"Once Korean Air completes its acquisition of Asiana Airlines, the airline is expected to be ranked as one of the top 10 airlines in the world," Hanjing KAL said in a statement. EFE-EPA