Korean Air (KE, Seoul Incheon) and Delta Air Lines (DL, Atlanta Hartsfield Jackson) have confirmed their proposed trans-Pacific joint venture has garnered conditional approval from the Korean Ministry of Land, Infrastructure and Transport (MOLIT) following a lengthy scrutinization process.
In a statement, MOLIT said it had approved the partnership on the condition that the two carriers do not reduce the current seating capacity provided on the five routes between the US and Korea that they currently operate without competition namely Seoul Incheon to each of Seattle Tacoma International and Atlanta Hartsfield Jackson (operated by both airlines), and the three routes operated exclusively by either of the two namely: Seoul Incheon-Las Vegas Harry Reid (operated by Korean Air); Incheon-Detroit Metropolitan (operated by Delta); and Incheon-Washington Dulles (operated by Korean Air).
In addition, the carriers must also give annual reports on improvements to customer benefits seen as a result of the tie-up. They must also monitor freight dynamics by submitting the relevant freight data for scrutinization.
"We will closely monitor the reports and check any side effects that could occur on the routes where the two firms have a big market share," the MOLIT statement said.
The partnership already secured US Department of Transportation (DOT) approval in November 2017.
With this regulatory nod, Delta and Korean Air will shortly roll-out full reciprocal codesharing on each other’s networks in addition to offering improved reciprocal loyalty program benefits, including providing customers of both airlines the ability to earn more miles on Korean Air’s SKYPASS program and Delta’s SkyMiles program. Other benefits will include the implementation of joint sales and marketing initiatives as well as an increase in bellyhold cargo cooperation on flights across the Pacific.
