The Fair Trade Commission said on the 11th that Korean Air has filed an application to adjust its seat supply obligation on the Incheon–Guam and Busan–Guam routes.
According to the Korea Fair Trade Commission (FTC), Korean Air formally requested a review on the 4th, asking to change the corrective order on the two routes. At the end of last year, the Korea Fair Trade Commission (FTC) approved the merger of Korean Air and Asiana Airlines on the condition that the seat supply on those routes be maintained at 90% or more of 2019 levels, before the COVID-19 pandemic.
The measure was intended to prevent reduced competition on certain routes after the two airlines combined, which could limit consumer choice. However, there have been notes that demand on the Guam routes has recently fallen sharply, widening the gap between the supply standard and actual load factors.
On the Busan–Guam route last month, controversy grew after a case in which nine people, including three passengers and airline staff, boarded an aircraft with about 180 seats. With market demand shifting rapidly, Korean Air's request appears to seek an easing of the maintenance obligation.
The corrective order imposed by the Korea Fair Trade Commission (FTC) includes a clause allowing the parties to apply for an adjustment of the order if there is a significant change in circumstances, such as a "sharp drop in demand." Korean Air also requested a change to the corrective order for the Cheongju–Jeju route on the 17th of last month for the same reason.
An official at the Korea Fair Trade Commission (FTC) said, "We plan to closely review whether the conditions for changing the corrective order on the routes are met so that consumer benefits can be ensured in the air travel market."