Loading

Korea domestic: Asiana and Korean Air grow, but LCCs still dominate

Despite Korea’s compact geography and proliferation of affordable high-speed train services, the country’s domestic market continues to grow and reached 65 million passengers in 2017, mostly because of flights to the popular island of Jeju.

Yet growth is slowing, mostly due to slot shortages in Seoul, Busan and Jeju. Korean Air and Asiana are growing, with Asiana reaching record domestic output in recent years, but LCCs still fly 57% of the domestic market.

More airlines may be on the way: Korea’s aviation sector has heavily debated the need for new entrants. However, since Korea’s competitive authority has announced that it will weigh on the matter the outlook looks bright for new entrants, since the competitive authority would likely favour the contender best suited to survive, versus Korea’s aviation industry wanting to preserve the status quo.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,269 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.