Korean Air and Asiana Airlines are expected to have their slots (the right to use airports) and air transport rights (the right to operate aircraft) for over 20 routes in China, Japan, and Indonesia redistributed as early as next month. These routes are considered valuable due to high passenger demand.
According to the aviation industry on the 11th, the Ministry of Land, Infrastructure and Transport plans to allocate over 20 domestic and international routes to national and foreign airlines as early as next month. This decision follows the Fair Trade Commission's structural measures requiring the surrender of air transport rights for routes with market share exceeding 50% due to the merger of Korean Air and Asiana Airlines.
The routes subject to redistribution include locations in China (Zhangjiajie, Xi'an, Beijing, Shanghai), Japan (Nagoya, Osaka, Sapporo), and Indonesia (Jakarta). These routes experience high passenger demand and can operate flights frequently, making competition for air transport rights among airlines intense. Recently, airlines have communicated their preferred routes and other preliminary opinions to the Ministry of Land, Infrastructure and Transport.
Initially, the aviation industry anticipated fierce competition from Jeju Air, Eastar Jet, and T'way Air. However, following an accident at Muan International Airport at the end of last year, Jeju Air seems to have fallen behind in the competitive landscape. The Ministry of Land, Infrastructure and Transport will consider airline accidents, fatalities, and safety over the past three years when allocating air transport rights.
T'way Air, which is expected to start operations in September, has also been included in the air transport rights redistribution target. T'way Air is currently undergoing inspections for the issuance of an Air Operator Certificate (AOC) from the Ministry of Land, Infrastructure and Transport. They introduced their first aircraft earlier this month and have only a few steps left, including emergency evacuation training and demonstration flights. Having introduced an A330-200 model capable of long-haul routes, they are heavily investing in route expansion.
Jin Air is expected to convey its intention regarding the redistribution of air transport rights for some routes. Following the merger of Korean Air and Asiana Airlines, their subsidiary Jin Air, along with AIR BUSAN and AIR SEOUL, will also merge into Jin Air by the end of next year. If routes with over 50% market share are created, they will fall under the structural measures of the Fair Trade Commission.
T'way Air, which received European routes, and Air Premia, which has entered the U.S. route market, are also expected to join the competition for this air transport rights redistribution. Now integrated into Daemyung Sonoh Group, T'way Air has publicly declared large-scale capital expansion alongside aggressive route expansion. Air Premia expanded its fleet last month by introducing its eighth aircraft.
Some routes are expected to be allocated to foreign airlines. In the case of Japanese slots, it is highly likely they will be awarded to Japanese low-cost carriers (LCC). Last April, the Gimpo-Osaka and Nagoya routes were taken by Peach Aviation.