Korean Air-Asiana merger nears completion: part two – deal causes seismic shift in market landscape

The upcoming completion of the merger between Korean Air and Asiana has significant market implications, not just for Korean Air and its subsidiaries but also for other South Korean carriers.

The new-look Korean Air will obviously have greater network and fleet scale, and a higher market share.

This will have the greatest impact in full-service and cargo operations, although the merger will also create a much larger LCC subsidiary.

Concessions required for the deal's approval mean that a handful of smaller South Korean carriers such as Air Premia and T'Way (now Trinity Airways) have benefitted from the merger, particularly on international routes.

Part one of this analysis focused on the many hurdles Korean Air had to overcome to gain the necessary approvals from aviation authorities around the world, and also looked at fleet ramifications.

Part two examines the market ramifications for Korean Air, and for other players.