[Click eStock] "T'way is the Beneficiary of Asiana Merger"

On the 15th, Korea Investment & Securities stated that while overseas approvals for the merger between Korean Air and Asiana Airlines are being delayed, the LCCs are gaining more reflected benefits than the merger parties themselves. Accordingly, they maintained a buy rating on T'way Air and Jin Air.

Choi Go-woon, a researcher at Korea Investment & Securities, said, "The biggest beneficiary is T'way," adding, "They plan to continuously expand their route portfolio, not just limited to the transfer of four routes."

T'way Air is expected to enjoy economies of scale at the Hanjin Group level and strengthen its market position on short-haul routes the most.

Researcher Choi Go-woon emphasized, "We should pay attention to the upside potential of rising to the position of the second full-service carrier (FSC), beyond simply increasing routes," and predicted, "Jin Air is expected to lead the future integration of Air Busan and Air Seoul."

He anticipated that the effects of acquiring Asiana will be re-evaluated over time.

He stated, "Chinese airlines, the biggest competitors within the Asiana airline market, are still struggling with trade conflicts and the aftermath of the pandemic, providing an opportunity for Korean Air to capture market share," adding, "The rationale for enhancing global competitiveness through the integration of national carriers is no longer an illusion," and concluded, "Given that merger synergies are expected to be re-evaluated over time, we maintain a buy rating on Korean Air."