KFTC Rejects Korean Air's Request to Ease Seat Supply Mandates
The Korea Fair Trade Commission (KFTC) has rejected Korean Air's request to ease seat supply mandates imposed as a condition of its acquisition of Asiana Airlines. The regulator determined that despite rising oil prices and exchange rates stemming from the Middle East conflict, no broad-based contraction in air passenger demand has materialized.
The KFTC examined the airlines' claims that weakened passenger demand caused by surging oil prices and exchange rates warranted a waiver or easing of seat supply obligations. However, examiners estimated total air passenger demand for each route in 2026 based on ticketing records and concluded that no overall demand contraction was evident across the route network.
Korean Air had requested to lower the seat supply threshold on certain routes from 90% or more of 2019 levels to 70% or more, citing 'unavoidable changes in circumstances due to external factors.' However, KFTC examiners found it difficult to conclude that new circumstances had emerged since December 24, 2024, which would make compliance with the seat supply obligations impracticable.
The examination report also includes a recommendation to file criminal complaints against Korean Air and three employees for obstructing the investigation. The employees allegedly deleted work-related computer files and emails connected to the matter under investigation during an on-site probe at Korean Air's headquarters in February 2026.