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100% participation in 7 routes from Incheon to Los Angeles and New York
More than 75% from Incheon to Honolulu, Rome, Phuket and Delhi
Rep. Park Sang-hyuk “The sanctions and control plan should be discussed in advance”
As the Fair Trade Commission is examining a merger and acquisition-related merger between Korean Air and Asiana Airlines, voices of concern have emerged that the monopoly will intensify.
Rep. Park Sang-hyuk (and Democratic Party) noted that of the 143 international routes operated by Korean Air and Asiana Airlines, 32 routes (22.4%) had a market share of more than 50% when the two companies merged. .
These 32 routes included many of the so-called real long-haul routes from Incheon to Los Angeles, New York, and Paris. The combined market share of the seven routes from Incheon to Los Angeles, New York to Chicago, Barcelona, Sydney, Palau and Phnom Penh was 100%, and from Incheon to Honolulu, Rome, Phuket and Delhi more than 75% .
The FTC believes that if a commercial operator holds 50% or more, there is a high possibility of intensifying the monopoly. In fact, at the time of the Jeju Air and Eastar Jet integrated review last year, the FTC issued a separate judgment on restrictions on competition on the Cheongju-Taipei route, which is expected to have a monopoly of more than 50 % after integration. .
Korean Air Chairman Woo Ki-hong told a press conference on the 2nd last month that “the two carriers have a 38.5% share of the passenger spaces at Incheon Airport.”
Rep. Park Sang-hyuk, however, refuted: “This is only part of the time slot, and when it comes to the number of flights per route, the routes that are expected to become monopoly were considerable.”
The National Assembly’s Legislative Investigation Office also raised concerns about this in a debate organized jointly with Parliamentarian Park Sang-hyuk on December 22. When the Fair Trade Commission examines company mergers, the market should not be divided into national and international routes, but should be defined for each route. In the case of international flights, since there is rarely a replacement between routes, it becomes a monopoly, which can lead to higher fares and lower benefits for the consumer.
Representative Park Sang-hyuk said: “The monopoly of large integrated airlines needs to be reviewed from various angles, such as slot participation, route participation, prime time participation, etc. It is questionable whether the ministries relevant review and prepare such content.
In addition, “to save the aviation industry in crisis and strengthen international competitiveness, policy funding and other support are provided, so the aviation industry prospects and benefits to the public should be carefully reviewed. . It will have to be negotiated. ”
