The government will support the expansion of medium and long-distance routes operated by low-cost carriers (LCC) to prevent monopolies after the merger of Korean Air and Asiana Airlines. It also plans to provide subsidies for new routes to activate regional airports and expand dedicated air routes for them. To prepare for the creation of new international airports such as Gadeokdo New Airport, Daegu-Gyeongbuk Integrated New Airport, Jeju Second Airport, and Saemangeum New Airport, the government plans to expand outbound international flights from regional airports and diversify routes by attracting medium and long-distance routes.
On the morning of the 11th at 9:30 a.m., the government held a meeting of ministers related to strengthening industrial competitiveness at the Hanwha Ocean research and development center in Siheung, Gyeonggi Province, and announced plans to enhance the competitiveness of the air transport industry. The response measures mainly addressed changes in the internal and external environment following Korean Air's acquisition of new shares of Asiana Airlines, completing the corporate merger process.
To maintain the competitiveness of LCCs, which may weaken with the launch of an integrated airline, the government plans to prioritize the allocation of air routes. By securing additional air rights for medium and long-distance routes, such as those to Europe and South Asia, previously operated mainly by full-service carriers (FSCs), the government aims to distribute them centered on LCCs, thereby expanding flight opportunities. A government official noted, “Although a competitive structure among airlines has formed due to the cultivation of LCCs, there is concern that the market dominance of the integrated airline group will increase. Therefore, we need to support the expansion of operations by national LCCs, focusing on medium and long-distance routes.”
Recently, the demand for international business flights has been diversifying from being centered on China to emerging production bases like India and Vietnam. With improved national income levels and increased overseas travel experiences, travel demand is also shifting to new resorts and small independent travel destinations. The government plans to increase air rights and routes to reflect these changes. Specifically, LCCs will have the priority to enter routes with high demand, such as Japan and Southeast Asia.
In regions like Africa and Latin America where air rights are sufficient but flights are lacking, the government will encourage airlines to operate through charter flights. Gradually, the areas without air rights restrictions will also grow. This is to create an environment where airlines can freely increase flights according to demand. Air liberalization refers to an aviation agreement that permits unlimited flights and routes between two countries. The government plans to prioritize air liberalization on routes such as the European Union (EU), Indonesia, and Australia, and to pursue gradual liberalization with China depending on changes in demand.
Measures to strengthen Incheon Airport's hub competitiveness are also included. The government plans to establish new routes to destinations not served by Incheon Airport, such as the Maldives in South Asia and Copenhagen in Europe, establishing a dense network compared to competing airports in East Asia. National airlines operating on routes without direct flights from Korea will receive incentives, such as additional points when distributing air rights for future popular routes.
While firmly maintaining the traditional Southeast Asia-Korea-America transit axis, the government is expanding new north-south transit models, such as Oceania-Korea-Central Asia. To achieve this, the government will adjust airlines' departure times to enable quick transfers and reflect the possibility of attracting transit passengers when distributing air rights.
The government will collaborate with the Fair Trade Commission to oversee corrective measures on routes with potential monopoly concerns, such as fare increase management and prohibition of mileage disadvantages. The Ministry of Land, Infrastructure and Transport plans to detail future supervision plans with the Fair Trade Commission and promote a memorandum of understanding (MOU) containing additional supplement plans.
The reallocation of terminal airlines is also being pursued. Currently, Incheon International Airport has Asiana Airlines, Air Busan, and Air Seoul in Terminal 1, and Korean Air and Jin Air in Terminal 2. To enhance transfer efficiency and cooperation for the integrated airline, the government plans to consolidate airlines in Terminal 2. This reallocation plan is expected to be established by March next year and implemented in the second half of next year.
In addition, a plan to activate regional airports for balanced national development has been proposed. Supporting the operation and expansion of flights for airlines to utilize the already secured exclusive regional airport air routes, and encouraging new routes through airline subsidies are part of the plan. Routes such as Busan-Ulaanbaatar, Busan-Jakarta, and Cheongju-Bali are expected to commence in the second half of next year.
Subsidies for new flights at regional airports will be provided by local governments, while discounts on landing, stopover, and lighting fees by route will be offered by the airport corporation. Based on regional demand, the government plans to expand exclusive regional airport air rights, focusing on medium and long-distance routes such as Europe and South Asia. A government official explained, “We will proceed with the planned construction of new airports without difficulties and prepare support measures to cultivate hub airlines, such as granting priority during the allocation of air rights and slots for regional airports.”
The government will also expand international air cargo services. Measures will be meticulously taken to prevent disruption to the national logistics network during the sale of Asiana Airlines' cargo business. Air cargo rights for China, where e-commerce demand is increasing, will be expanded from 54 times a week to over 60 times.
A government official said, “As international flights surged during the recovery from the COVID-19 shock, aircraft malfunctions and defects occurred, and there is a need to minimize delays caused by these issues. We will prioritize safe operations during the future expansion of international flights and in the process of corporate mergers.”