It was confirmed that T'way Air did not apply for the Seattle route, known as a "prime route." In the airline industry, many expected T'way Air to enter U.S. routes to create synergy, as its largest shareholder, Sono International, operates three hotels in the United States. Alaska Airlines was the only applicant for the Seattle route.
According to the airline industry on the 22nd, T'way Air did not apply for the Seattle route for which the Fair Trade Commission accepted transfer applications through the 10th of last month. Initially, with Air Premia launching a new route to Washington, D.C., the industry largely took it for granted that T'way Air would apply for the Seattle route.
At the end of last year, when the Korea Fair Trade Commission (FTC) approved the corporate merger of Korean Air and Asiana Airlines, it required that the traffic rights and slots for 34 routes where a monopoly could arise be transferred to other airlines within 10 years. In this process, six international routes came onto the market.
The six routes are Incheon-Honolulu, Incheon-London, Incheon-Seattle, Incheon-Guam, Busan-Guam, and Incheon-Jakarta. After the Korea Fair Trade Commission (FTC) conducts an eligibility review, the Ministry of Land, Infrastructure and Transport (MOLIT) evaluates and makes the final decision on route allocation.
An official at the Ministry of Land, Infrastructure and Transport (MOLIT) said, "The process of selecting an alternative airline for the Seattle route is underway," adding, "Once selected, the airline will have to draw up a service plan."
It was found that Alaska Airlines was the only participant in the allocation for the Seattle route. No domestic low-cost carriers (LCCs) applied.
Currently, in addition to Korean Air, Asiana Airlines, Alaska Airlines, and Delta Air Lines operate nonstop flights on the Seattle route. Alaska Airlines is said to have applied to obtain additional slots to expand its Seattle service.
A source in the airline industry said, "I understand that Air Premia also weighed whether to apply for the Seattle route or newly launch the Washington, D.C., route," adding, "T'way Air not applying for the Seattle route is quite an unexpected decision."
Many in the airline industry expected T'way Air to expand its North American routes. T'way Air serves major European cities such as Paris, Rome, Barcelona, and Frankfurt, as well as Vancouver, making it the only domestic LCC to operate European and North American routes simultaneously. It is said to have reviewed the Seattle route because it has no U.S. route among its North American services.
The "synergy" with its parent company, Sono International, was also cited as a reason T'way Air would seek to secure a U.S. route. Sono International operates the "Normandy Hotel" in Washington, D.C., the "33 Seaport Hotel New York" in New York, and the "Waikiki Resort Hotel" in Hawaii.
A T'way Air official said, "There are currently no plans to expand North American routes," adding, "Internally, we are reviewing expansion of routes outside North America and plan to secure a variety of routes." A Sono International official said, "Since our main business is hotels and resorts, expanding international routes is a very important matter to create synergy with T'way Air," adding, "We are considering options."