Since 2003, the era of the two major airline alliances in South Korea has come to an end after more than 20 years. As a result, it is expected that the choices available to domestic consumers who have benefited from being members of two different airline alliances will decrease.
According to the Incheon International Airport Corporation, in the first half of this year, the number of passengers on the Incheon to North America and Europe routes for the airline alliance “SkyTeam” was approximately 1.85 million and 0.97 million respectively. On the other hand, the number of passengers for the “Star Alliance” was approximately 0.97 million and 0.95 million.
The country’s largest airline, Korean Air, dominates the Incheon routes belonging to the SkyTeam with 77% to North America and 79% to Europe. On the other hand, Asiana Airlines, a member of the Star Alliance, only reaches 63% to North America and 45% to Europe.
This difference is partly due to the larger number of flights operated by Korean Air, but it also means that airlines belonging to the Star Alliance have not relied on codeshare flights with Asiana Airlines and have operated more of their own flights. Although the number of passengers carried by the two major airline alliances on the Incheon to Europe route is in the 900,000s, excluding Korean Air and Asiana Airlines, there is a significant difference with SkyTeam at approximately 200,000 and Star Alliance at around 520,000.
However, this situation is likely to change significantly due to the corporate merger of Korean Air and Asiana Airlines. Both companies have indicated that Asiana Airlines has not yet made a decision to withdraw from the Star Alliance, but it is believed that Asiana Airlines will inevitably withdraw within two years due to the merger.
Since Korean Air established the SkyTeam in 2000 and Asiana Airlines joined the Star Alliance in 2003, South Korea has had airlines that belong to two airline alliances, but this system will come to an end after more than 20 years.
Currently, it is predicted that the influence of SkyTeam will further strengthen. Miles are a sensitive factor for consumers, and the Star Alliance, which will no longer allow consumers to earn miles with Korean airlines, will see a decrease in attractiveness as an option.
Of course, it is possible to earn miles with other airlines belonging to the Star Alliance, but the options for using them are limited. For example, while Asiana Airlines offers domestic and international flight options, foreign airlines have relatively fewer routes related to South Korea.
Additionally, the expiration date for Asiana Airlines miles is 10 years from the date of accrual, but foreign airlines within the Star Alliance, such as Lufthansa, may have shorter expiration periods of 3 or 1 year, making them less user-friendly.
Furthermore, the deferred revenue on the financial statements of Asiana Airlines, indicating unused miles, is approximately 975.8 billion won (around 97.9 billion yen), and if this is converted to Korean Air’s miles in the future, the Star Alliance may lose its loyal customers.
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