South Korea aviation market: a decade of rapid growth driven by LCCs 

South Korea has had one of the most dynamic and fastest growing aviation markets in Asia this decade. Change is unlikely as more start-ups prepare to launch services, the market leader Korean Air begins a new chapter under a new leader, and South Korea's second largest airline Asiana restructures.

Passenger traffic in South Korea has more than doubled over the past 10 years - from 52.3 million in 2008 to 117.5 million in 2018. The number of local airlines operating scheduled services has increased from only three at the beginning of 2008 to eight currently.

Three more Korean start-ups are planning to launch operations in 2H2019 or 2020. It seems unrealistic that the market could sustain so many airlines - even if passenger traffic continues to grow at a high single digit or low double digit rate.

However, consolidation predictions from 10 years ago - when four airlines entered, increasing the playing field to seven - have proved inaccurate. This indicates that Korea is a unique market that is potentially capable of supporting an unusual number of competitors over the long term.