Concerns grow over consumer rights after K... > 경제기사 | economics

Korean Air Lines Co. has introduced extra charges for preferred seats on domestic flights, raising concerns about consumer rights infringement shortly after the antitrust authority completed its merger review with Asiana Airlines Inc.

Starting Friday, passengers on Korean Air will pay an additional 10,000 won $6.99 to 15,000 won to pre-select preferred seats, including extra legroom seats near emergency exits and front-row seats offering faster boarding and disembarkation.


The move has sparked immediate criticism.

“Unlike low-cost carriers LCCs, full-service carriers FSCs have allowed free seat selection during booking,” said an industry insider. “Charging for preferred seats in effect raises fares. It also appears to be an early effort to recover merger-related costs and boost profitability.”

On Thursday, the Korea Fair Trade Commission KFTC announced updates to the corrective measures tied to its review of the merger.

Finalized measures require the combined entity to maintain at least 90 percent of 2019 seat supply levels on routes where competition could be significantly reduced.

This reflects the aviation industry‘s recovery to pre-Covid-19 levels.

According to industry data, the aviation sector has recovered to over 90 percent of pre-Covid-19 levels in the first half of this year, including seat supply, passenger numbers, and aircraft availability.

The KFTC also revised its stance on the return of air traffic rights and slots.

Previously, these were to be surrendered post-merger, but the commission will now consider pre-merger compliance with conditions set by foreign regulators.

For instance, T’way Air has entered four European routes previously operated by Asiana, while Air Premia now flies on five U.S. routes.

Regarding the mileage system integration, Korean Air must submit an integration plan to the KFTC within six months, with any changes requiring the commission’s approval. Evaluation criteria for merger ratios remain undecided.

Industry experts view the KFTC’s measures as largely favorable to Korean Air, easing its path toward completing the merger.

The merger has, however, raised long-term concerns about higher fares and route consolidations.

Observers doubt whether LCCs such as Air Premia and T’way Air can adequately replace Asiana Airlines, potentially leaving Korean Air in a monopolistic position.

“If the KFTC recognizes Air Premia and T’way as competitors and assigns them substitute routes, it won’t be able to impose further corrective measures.

“The superficial adjustment undermines the effectiveness of seat supply and price controls,” said another industry official, calling for strategies to curb fare hikes and service declines.

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