In this file photo, planes of Korean Air Co. and Asiana Airlines Inc. are seen on the tarmac at Incheon International Airport, west of Seoul, on Nov. 2, 2023. (Image courtesy of Yonhap)
SEOUL, Mar. 7 (Korea Bizwire) — The government said Thursday it plans to closely monitor air ticket prices amid concerns of market monopolization from an envisioned merger between Korean Air Co. and Asiana Airlines Inc.
The Ministry of Land, Infrastructure and Transport announced the measures centered around the transport and logistics infrastructure for 2024 at a government policy debate forum attended by President Yoon Suk Yeol in Incheon, west of Seoul.
The ministry said it plans to closely monitor airfare, particularly on international routes with high market share by the integrated airline, to prevent arbitrary price hikes following the merger.
The 1.8 trillion-won (US$1.4 billion) merger deal announced in 2020 has been approved by antitrust authorities in 13 countries and regions, and is waiting for final approval from the United States.
The government said it plans to regularly check airfare and manage it through fare approval and reporting systems. It also pledged to enhance the existing fare management system by establishing an integrated international route management system to collect data on airline ticket prices.
Regarding integration of customers’ mileage between the companies, the Fair Trade Commissions (FTC) plans to establish a supervision committee to review the integration process, according to the ministry.
In February 2022, the FTC stipulated that the companies should not change the mileage system to the disadvantage of consumers compared with that as of the end of 2019.
The government also plans to offer support to domestic low-cost carriers to foster fair competition with the integrated full-fledged carriers.
Additionally, the ministry said it plans to gradually expand the number of South Korea’s open skies treaties with other countries to up to 70, from the current 30, by 2030. It will also expand air traffic rights to regions with previously insufficient operations, such as Southwest Asia and Central Asia.
(Yonhap)
