Key Points:
- T’way Air views allocating European routes as a strategic opportunity to establish itself as a long-haul carrier.
- The EU mandate requires Korean Air to surrender routes to T’way as part of its merger with Asiana Airlines.
- T’way plans to launch flights to Paris, Rome, Barcelona, and Frankfurt, expanding its international reach.
- Korean Air will lease aircraft and provide operational support to facilitate T’way’s entry into the European market.
T’way Air, South Korea’s second-largest low-cost carrier, sees the allocation of European routes from the Korean Air-Asiana merger as a strategic move to establish itself as a prominent long-haul carrier in Korea’s competitive budget airline sector.
The European Union competition authorities recently mandated that Korean Air surrender routes to four European cities to T’way as a condition for approving its merger with Asiana Airlines, providing T’way with a significant advantage in the market. Kim Hyung-yi, T’way’s senior vice president, emphasized the rare opportunity presented by acquiring these profitable routes from Korean Air, stating that it positions T’way uniquely in Korea’s budget airline landscape.
T’way plans to commence flights to Paris in June, Rome in August, Barcelona in September, and Frankfurt in October, significantly expanding its long-haul reach. While Singapore’s Scoot is currently the only other Asia-Pacific low-cost carrier operating direct flights to Western Europe, T’way aims to capitalize on this market gap.
Due to its limited land borders, South Korea relies heavily on air travel. The country boasts seven low-cost carriers and one hybrid carrier, catering to domestic, regional, and some international routes. As part of the EU deal, Korean Air will lease five wide-body A330-200 aircraft to T’way and provide 100 pilots and maintenance support, facilitating T’way’s entry into the European market.
T’way CEO Jeong Hong-geun outlined the airline’s long-term plans to secure its pilots and larger capacity aircraft, indicating a strategic evolution in its operational capabilities. Jeong anticipates T’way’s growth to reach 30-40% this year with the launch of European routes, signaling a significant expansion in the carrier’s operations.
Further consolidation is expected in Korea’s low-cost segment. Analysts and industry insiders are speculating on potential mergers between Korean Air’s Jin Air and Asiana’s Air Busan and Air Seoul, streamlining the market into three major LCCs. Jeong expressed T’way’s ambition to become the leading low-cost carrier in Korea, highlighting the airline’s commitment to achieving dominance in the fiercely competitive market.
