Korean Air-Asiana deal sparks major shakeup among budget carriers

Low-cost carriers (LCC) in Korea are gearing up for significant changes to their growth strategies, bracing for the envisioned launch of a mega-sized budget airline after Korean Air completes its acquisition of Asiana Airlines, according to industry officials, Monday. The outlook comes amid growing optimism for the two full-service airlines to secure final approval for the deal from U.S. authorities, possibly by the end of the year. Upon completion, Korean Air is widely anticipated to proceed with the integration of Jin Air, Air Seoul, and Air Busan — three LCCs operated by the two carriers. The newly launched LCC will be the largest budget carrier here, surpassing Jeju Air and T’way Air in terms of annual sales. Local aviation industry sources said other budget carriers have already started internal reviews to restructure their growth strategies as a preemptive measure to adapt and thrive amidst the anticipated paradigm shift in the LCC landscape. T’way Air is focusing on expanding its presence in Europe by introducing additional air routes connecting Incheon with major destinations such as Frankfurt, Paris, Rome, and Barcelona. This expansion follows the transfer of route rights from Korean Air to T’way Air. Earlier, Korean Air decided to relinquish those routes in exchange for conditional approval for its acquisition of Asiana from the European Union.<br/>