The bogus report aired in a Friday newscast on KTVU-TV. Within minutes, an apology was issued by the station, but the report had already spread on the Internet.
Asiana has decided to sue the station to "strongly respond to its racially discriminatory report" that disparaged Asians, Asiana spokeswoman Lee Hyomin said. She also said the report seriously damaged the airline's reputation. The airline will likely file suit in U.S. courts, according to Hyomin.
The National Transportation Safety Board has also apologized, saying a summer intern erroneously confirmed to the names to the TV station.
Asiana says it will not sue the NTSB because it said it was the TV station report, not the U.S. federal agency that damaged the airline's reputation.
Flight 214 crashed at San Francisco International Airport on July 6, killing three and injuring dozens.
The Associated Press contributed to this report.