Korean Air is set to expand its international routes as it prepares for the launch of its merger with Asiana Airlines on December 17. The airline plans to increase flight frequencies on four existing international routes, raising concerns about its growing market dominance, particularly on routes where monopoly fears have been raised.
According to data submitted to the Ministry of Land, Infrastructure and Transport, obtained by Aju Economy through Rep. Jeong Hee-yong's office, Korean Air will increase the number of flights on these routes to coincide with the merger's launch.
The Incheon-Seattle route, which absorbed Asiana's operations last month and was expanded to 12 flights per week, will increase to 14 flights per week in line with the merger. The Incheon-Brisbane route will rise from four to five flights per week, while the Incheon-Miyazaki route will increase from three to seven flights, and the Incheon-Sendai route will grow from five to seven flights per week.
Notably, the Seattle route has been flagged by the Fair Trade Commission as a route with potential competition restrictions. As of 2019, the combined market share of Korean Air (34.96%), Asiana (34.69%), and Delta Air Lines (26.47%) on this route reached 96.12%.
In response, the Fair Trade Commission selected Alaska Airlines as an alternative carrier for the Seattle route to alleviate competition concerns, but slot transfers have yet to occur. Alaska Airlines has been operating the Incheon-Seattle route five times a week since September 13 of last year, which is only 35.7% of the planned 14 flights by the merged Korean Air.
A Fair Trade Commission official stated, "When an alternative airline is selected for a route with competition restrictions, it is generally considered that structural corrective measures have been implemented once the airline actually enters the market. However, if there is no change in market share within ten years after the corrective measures, it could become an issue."
Korean Air cited resource optimization as the reason for the increased flight frequencies. The airline aims to diversify flight schedules and departure times according to seasonal factors to enhance passenger choice and convenience. However, there are concerns in the market that this route expansion could further strengthen the market dominance of the merged airline, particularly on major international routes.
The new and expanded routes to Australia and Japan announced by the merged Korean Air are markets where domestic low-cost carriers (LCCs) have focused on capturing niche demand. Jeju Air currently operates the Incheon-Hiroshima route 14 times a week and plans to launch a new route to Sendai three times a week in January. The Incheon-Brisbane route is also operated three times a week by the Australian LCC Jetstar. If Korean Air increases its flight frequencies on these routes, competition for passenger acquisition among existing airlines is expected to intensify.
An airline industry official remarked, "From a consumer perspective, the increase in available seats is positive, but for airlines that previously operated these routes alone, sharing passengers could pose management challenges."
* This article has been translated by AI.
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