Asiana could join ANA in having a second LCC subsidiary. While complicated, it could work

Dual-brand strategies are most prevalent in Asia, and remain largely a regional phenomenon. As Asiana Airlines considers establishing a low-cost carrier in Seoul, a second trend begins to emerge: carriers with two short-haul LCCs in the same country. Asiana's proposed Seoul carrier would join Busan-based Air Busan, and Asiana would imitate All Nippon Airways, which has Osaka-based Peach and Tokyo-based Vanilla Air.

These are not ideal outcomes given the loss of synergies and scale. But they are also very complex situations that do not permit the same strategic response as might be found in another market. For both Asiana and ANA to have two short-haul LCCs may be considered extreme, but perhaps useful if Asiana is at last to participate effectively in Seoul's low-cost market, where independent Jeju Air has become Seoul's third-largest international carrier. Starting fresh, rather than expanding Air Busan, may be the only solution.