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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] The Fair Trade Commission (FTC) has officially begun reviewing Korean Air’s request to adjust its compliance obligations for routes to Guam.
On December 11, the FTC confirmed that Korean Air submitted a request on December 4 to modify its compliance orders for the Incheon–Guam and Busan–Guam routes. Earlier, on November 17, the airline had also applied to adjust the Cheongju–Jeju route. This marks the first instance of a request to modify supply maintenance obligations imposed during the approval of the Korean Air–Asiana Airlines merger in December 2024.
At that time, the FTC required the airline to maintain seat supply at 90% or more of 2019 levels for each route and year to prevent consumer harm from market dominance. However, the rules included a flexibility clause allowing carriers to request adjustments in case of “unavoidable changes due to sudden demand shifts or external factors.”
An FTC official stated, “We are currently reviewing whether the modification requests meet the necessary criteria and will thoroughly examine them to ensure consumer benefits in the aviation market are maintained.”
Industry observers note that declining tourism demand in Guam and extremely low load factors on some flights have made the supply maintenance obligation a practical challenge. For instance, on the Busan–Guam route last month, only three passengers boarded a 180-seat aircraft.
The FTC plans to review documents submitted by Korean Air, including demand data, route profitability analyses, and alternative flight plans. Stakeholder feedback may also be solicited if necessary. Approval of the requested adjustments will be determined based on the outcome of the review.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
