Korea-Taiwan: LCCs drive growth, new city pairs. FSCs pull back

The market between Korea and Taiwan is woefully small; the total size from all airlines, LCCs and full service, equals the amount of LCC capacity between Japan and Korea.

This is the result of the lack of liberalisation between Korea and Taiwan for the main Seoul-Taipei route. In the face of restrictions, smaller airports are partnering with LCCs to generate new city pairs that are not subject to bilateral restrictions. The number of city pairs between Korea and Taiwan is expanding, and so too is the overall market - but mostly because of LCCs.

Since 2016, full service airlines have slightly decreased capacity between Korea and Taiwan, whereas LCCs have expanded and grown the overall market. LCCs have amassed a 37% market share between Korea and Taiwan. CAPA's LCCs in Northeast Asia summit in Seoul in Jun-2018 will explore these markets, as well as airline-airport partnerships and growth opportunities for Korea's existing LCCs and the large list of start-ups.