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Alitalia's new strategy. Part 2: Asia - Korean Air doubles Italy and Hainan Airlines grows to Rome

Analysis

Alitalia's new-found Asia strategy appears to be stimulating competitive responses. Alitalia has announced new services to Seoul, a return to China and expanded services to Japan. More Asian markets could be on their way. After much delay, Korean Air will double its presence in Italy by de-coupling Milan and Rome, served on a triangular routing, and then increasing capacity.

Korean Air has carried 25% of the Korea-Italy market, so it has left much traffic to others, mostly to sixth freedom airlines like Lufthansa and other Europeans. Alitalia part owner Etihad hopes Alitalia's eastwards expansion will allow it to claw back at the gains Lufthansa and other carriers have made in Italy.

Growth from China to Italy looks more organic than competitive. Air China will become the largest airline in the Italy-Asia market while the China-Italy market will welcome a third Chinese player as Hainan Airlines starts twice-weekly Chongqing-Rome service.

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