Loading

LCCs in Korea: tighter entry rules for startups

Korea is home to six LCCs, the most recent of which launched in 2016 and then 2010. The prevailing assumption was that the market would consolidate, but new players have made known their wish to launch.

Unlike in other Asian markets, all flying or proposed LCCs are wholly Korean brands. The former Tiger group was unsuccessful in launching a Korean unit, and the AirAsia Group was told that an application would be rejected. This policy is unlikely to change.

What is different from the policy revisions is Korea's apparent attempt to weed out some of the smaller LCCs that have less in financial resources. Korea will also exercise greater control over airline finances and exclude airlines from slot allocation, which should make the process fairer.

Korea does face medium term market saturation, but the start-up process has been coloured by a degree of protectionism. With a final framework for start-ups, Korea appears set for new market entrants.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,661 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.