South Korea plans to support low-cost carriers (LCCs) expanding medium- and long-haul routes to prevent Korean Air and Asiana Airlines, the country’s two largest airliners, from monopolizing the aviation market after their proposed merger.
The measures, unveiled on Dec. 11, include providing regional airports with new flight subsidies and dedicated route rights. The government also aims to expand international flights departing from regional airports and diversify routes in line with the construction of new international airports, including Gadeok Island Airport, Daegu-Gyeongbuk Integrated New Airport, the second Jeju Airpot, and Saemangeum International Airport.
The Ministry of Land, Infrastructure and Transport announced an aviation industry support plan during a meeting at Hanwha Ocean’s research and development campus in Siheung, Gyeonggi Province. The plan primarily addresses strategies to adapt to potential changes in the market arising from the Korean Air-Asiana Airlines merger, which will be finalized on this day after Korean Air’s 1.5 trillion won ($1.07 billion) acquisition of Asiana Airlines’ 131.57 million new shares.
To safeguard competition following the launch of the unified airline, the government will prioritize LCCs in allocating new route rights, particularly for medium- and long-haul routes to Europe and Southwest Asia.
“The Korean Air-Asiana Airlines merger raises concerns of market dominance,” said a government official. “We are committed to supporting the growth of LCCs to maintain a competitive aviation market, especially for medium- and long-haul routes.”
Demand for business travel has shifted from China to emerging markets such as India and Vietnam, while leisure travelers are increasingly seeking new destinations. The government plans to increase route rights and flights in response to these changes. LCCs will be given preferential access to high-demand routes in Japan and Southeast Asia.
LCCs will receive priority access to high-demand routes in Japan and Southeast Asia.
The government will encourage LCCs to operate irregular flights in underutilized markets, such as Africa and Latin America, where route rights exceed flight demand. Officials aim to designate additional “air transport liberalization zones,” where airlines can operate without restrictions on routes or flight frequencies. Air transport liberalization refers to agreements that allow unrestricted flight operations between countries.
Priority regions for air transport liberalization include routes to the EU, Indonesia, and Australia. The government will take a phased approach for China, gradually adopting liberalization in line with demand.
