Watchdog reviews Korean Air's alleged failure to maintain seat capacity
Summary
Korea’s antitrust watchdog began deliberations Wednesday on allegations that Korean Air Lines failed to meet seat capacity requirements tied to its takeover of Asiana Airlines. The Fair Trade Commission said its examiner recommended penalties and a criminal referral after finding fewer than 90 percent of required seats on the Cheongju-Jeju route from December 2024 to December 2025. The report also recommended rejecting a request to lower the minimum seat requirement on routes to Guam. The commission will issue final decisions after plenary deliberations and a defense presentation.
Key Facts
- The FTC said the merger conditions required airlines to keep seat capacity on designated routes at no less than 90 percent of 2019 levels.
- The examiner’s report found Korean Air, Jin Air and Asiana Airlines offered fewer than 90 percent of the seats on the Cheongju-Jeju route between December 2024 and December 2025.
- The report recommended penalties for noncompliance and a criminal investigation referral.
- A separate examiner’s report recommended rejecting a request by Korean Air and four affiliates to lower the minimum seat capacity requirement from 90 percent to 70 percent on routes between Incheon and Busan and Guam.
- The airlines said they sought the Guam change because of declining popularity of the U.S. territory as a tourist destination.
An Asiana Airlines aircraft lands at Gimpo International Airport in western Seoul, Sept. 15. Yonhap
Korea's antitrust watchdog said Wednesday it has begun deliberations on allegations Korean Air Lines Co. failed to meet seat capacity requirements imposed as conditions for its takeover of Asiana Airlines Inc.
The Fair Trade Commission (FTC) said its examiner's report recommended taking actions against Korean Air, its affiliate Jin Air and Asiana Airlines for providing fewer than 90 percent of the seats offered in 2019 on routes connecting the central city of Cheongju and the southern resort island of Jeju between December 2024 and December 2025.
Under the merger conditions, the watchdog required the airlines to maintain seat capacity on designated routes at no less than 90 percent of corresponding 2019 levels.
The report found the airlines had violated the FTC's requirements and recommended imposing penalties for noncompliance and referring the case for criminal investigation.
In a separate case, an examiner's report recommended rejecting Korean Air and four affiliated airlines' request to lower the minimum seat capacity requirement from 90 percent to 70 percent of 2019 levels on routes connecting Incheon and Busan to Guam.
The airline cited the declining popularity of the U.S. territory as a tourist destination in seeking the change.
Examiners determined the circumstances did not meet the criteria for modifying the requirements.
The commission will make its final decisions following deliberations at a plenary session after giving the affected parties an opportunity to present their defense.
Asiana Airlines currently operates as a subsidiary of Korean Air. The two airlines are scheduled to merge into a single corporate entity on Dec. 17.
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