S.Korea's Air Premia, T'way compete for golden routes to Europe

South Korea's low-cost carriers (LCC) Air Premia and T'way Air Co. are competing to secure "golden routes" to Europe that Korean Air must give up to acquire Asiana. 

This LCC contest is apparently turning into a battle over pride as the growth potential of both carriers could differ depending on whether they secure such flights.

Airline industry sources on Sunday said the European Commission (EC) by early August will name carriers to take Korean Air Lines Co.'s slots, or the permissible number of takeoffs and landings per hour, on routes from Incheon to destinations like Paris, Rome, Frankfurt, Germany, and Barcelona, Spain. This measure seeks to alleviate fears over a route monopoly if Korean Air takes over Asiana Airlines Inc.. 

Air Premia was the first to make a move, recently submitting a letter of intent (LOI) and investment plan to the EC through Korean Air. Founded in 2017, the LCC is touting its operation of long-distance routes such as Incheon-Los Angeles.

The EC is reviewing the proposal based on Air Premia's aircraft retention plan.

Before Air Premia could secure these routes, however, T'way suddenly appeared as a competitor. Since February last year, when the world remained in the throes of the COVID-19 pandemic, the latter has prepared to launch long-haul flights by acquiring large aircraft like the Airbus A330-300.

“We plan to submit an LOI to the EC soon,” a company source said.

The reason both LCCs are competing for Europe-bound routes is to break away from their battle for short-distance flights and start long-haul ones, starting with premium destinations like Paris and Rome. A factor that explains this trend is Air Premia CEO Yoo Myung-sub and T'way CEO Jeong Hong-geun both used to work for Korean Air.

Airline industry pundits say both LCCs have major strengths and that the EC's response will probably decide the outcome of their competition. Thus Air Premia's long-haul flight experience, with its Los Angeles route featuring four large Boeing 787 Dreamliners of Korean Air and planned launch this month of a New York route and one next month for Frankfurt, is pitted against T'way's 13 years of operational know-how.

"We plan to add five large planes next year and 19 more by 2030," an Air Premia source said.

“Air Premia cannot match our know-how in running many overseas branches," a T'way source said. "We plan to secure more large planes capable of going to Europe."

Write to Hyung-Kyu Kim at khk@hankyung.com