South Korea's FTC weighs airline penalties and Guam capacity-easing request

  • FTC examiner recommended action against three airlines over Cheongju-Jeju capacity shortfalls.
  • Airlines sought to cut Guam route capacity obligations from 90% to 70% of 2019 levels.
  • Final decisions will follow defenses from affected parties and full commission deliberations.

South Korea's Korea Fair Trade Commission has begun deliberations on allegations that Korean Air, Jin Air and Asiana Airlines breached merger-related seat-capacity requirements by providing less than 90% of 2019 capacity on Cheongju-Jeju routes between December 2024 and December 2025. An examiner's report recommended penalties and a referral for criminal investigation, but the full commission has yet to decide. In a separate matter, the examiner recommended rejecting Korean Air and four affiliated airlines' request to reduce the minimum capacity requirement on Incheon-Guam and Busan-Guam routes from 90% to 70% of 2019 levels, citing insufficient grounds for changing the conditions. The airlines pointed to weaker Guam demand; South Korean arrivals fell 30.8% year-on-year to 133,879 from January through July, according to the Guam Government Tourism Office. The affected parties will have an opportunity to present their defense before a final plenary decision. Asiana operates as a Korean Air subsidiary, with the companies scheduled to merge into one corporate entity on Dec. 17.

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