Korean LCC t'way grows Daegu base, seeking expansion outside congested Seoul, Busan and Jeju
After several years of uncertainty, the Korean LCC t'way appears to be settling in for the medium term. T'way was Korea's smallest LCC until the mid-2016 launch of Air Seoul. A few initiatives indicate t'way is planning more strategically, and for the future, suggesting greater confidence. Bulking up, diversifying and creating new growth areas could help the airline with its plan to IPO in two years.
T'way is expanding its Daegu base in southern Korea. The LCC missed the big growth out of Korea's major cities when its positioning was fragile. With Seoul and Jeju facing capacity constraints Korea's LCCs turned to Busan, but now Busan is also constrained. T'way's expansion in Daegu is 83km from Busan.
Daegu is Korea's third largest population area, potentially making it good for outbound, with inbound more of a challenge to market but not impossible. Regional Korean airports, like their Japanese peers, will increasingly try to attract foreign airlines. T'way plans to add 737-900s, which can be used to upgauge or reach further into Southeast Asia, which Korean LCCs have only partially penetrated.
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