Seoul, October 10
Asiana Airlines Inc. has reignited tensions with South Korea's low-cost carrier after resuming flights on a route from Incheon to Osaka using newly obtained slots, months after surrendering the same route to Jeju Air Co. under Japanese antitrust conditions tied to its planned merger with Korean Air Lines Co., according to a report by Pulse, the English service of Maeil Business Newspaper Korea.
"The flag carrier, which had been required to cede the route to Jeju Air as part of efforts to ease monopoly concerns, has now re-entered the market by securing new airport slots in Osaka, effectively restoring its pre-merger flight schedule," the report said.
The move has triggered a backlash from budget airlines, which accuse Asiana Airlines of undermining the intent of fair competition measures.
Citing industry sources, the report said that on Thursday, Asiana Airlines had given up three daily round-trip slots between Incheon International Airport and Osaka's Kansai International Airport in line with corrective measures ordered by the Japan Fair Trade Commission (JFTC). Jeju Air subsequently obtained those slots through official allocation procedures with the Japanese aviation authorities and is obligated to operate the route for a period of three years.
However, the report noted that Asiana Airlines recently acquired new slots at Kansai and restarted operations at similar times, taking advantage of Japan's open-skies policy, which allows airlines to operate freely once airport slots are available, irrespective of government traffic-right designations.
Jeju Air, which had expected improved profitability from a "golden route," has strongly protested the decision, arguing that the return of a full-service carrier to the same route will intensify competition and squeeze margins.
Asiana Airlines noted that it had "fully complied with the JFTC's corrective measures" and independently secured new slots through legitimate procedures.
— ANI
Reader Comments
As someone who frequently travels to Japan, I appreciate having more options. But this does seem like a clever workaround by Asiana. They're technically following the rules but definitely violating the spirit of the antitrust conditions.
Reminds me of the airline competition issues we see in India. Big airlines always have the resources to outmaneuver smaller players. Hope Jeju Air can survive this - healthy competition benefits passengers in the long run! ✈ï¸
While I understand Jeju Air's frustration, Asiana is technically correct - they followed the open-skies policy. This shows how international aviation regulations can be exploited. The JFTC should have anticipated such loopholes.
As a business student, this case study is fascinating! It shows the tension between legal compliance and ethical business practices. Asiana's move might be legally sound, but it definitely raises questions about corporate ethics. 🤔
More competition usually means better prices for travelers, so this might actually benefit passengers flying between Korea and Japan. But I feel bad for Jeju Air - they must have made significant investments expecting protected operations.
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