Korean Air-Asiana merger puts LCCs' long-haul business model to test
The viability of Trinity Airways and Air Premia’s long-haul businesses remains in doubt, as both budget carriers struggle to build stable profit structures to keep their expanded operations afloat, industry officials said Thursday. The two airlines had been widely seen as major beneficiaries of remedies imposed by competition authorities to address concerns stemming from Korean Air’s acquisition…
The recent merger between Korean Air and Asiana Airlines has put long-haul businesses of budget carriers like Trinity Airways and Air Premia in jeopardy. Both airlines are grappling with the challenge of establishing profitable structures to sustain their expanded operations, as noted by industry officials on Thursday. Initially, the merger was seen as a boon for the budget carriers, with regulators requiring Korean Air and Asiana to open up routes to competitors to ensure competition.
Trinity Airways (formerly T’way Air) was granted four European routes – Incheon to Paris, Rome, Barcelona, and Frankfurt – while Air Premia was given the Incheon-Honolulu route. Although these expansions have granted the low-cost carriers access to significant international markets, they have also placed them in a more costly operational environment compared to traditional budget airlines, as wide-body aircraft and higher operational costs are essential for long-haul flights.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
Also reported by 1 other outlet
- Korean Air-Asiana merger puts LCCs' long-haul business model to test koreatimes.co.kr
