Korean Air-Asiana merger puts LCCs' long-haul business model to test

The merger between Korean Air and Asiana Airlines, which aimed to address competition concerns, has resulted in budget carriers Trinity Airways and Air Premia expanding their long-haul operations, raising doubts about their financial stability, industry officials revealed on Thursday. Both airlines were considered to benefit greatly from the remedies imposed by competition authorities following the merger.

These measures obliged Korean Air and Asiana to allow their rivals on routes where regulators feared the consolidation could reduce competition. As part of these adjustments, Trinity Airways, previously known as T'way Air, assumed control of four European routes, operating flights from Incheon to Paris, Rome, Barcelona, and Frankfurt.

Simultaneously, Air Premia was granted permission to run the Incheon-Honolulu route, aimed at maintaining competitive markets post-merger. While this expansion granted LCCs access to important international destinations, it has simultaneously subjected them to a more substantial cost structure compared to conventional budget airlines. Long-haul flights necessitate the use of wide-body aircraft, which are more expensive to operate.