[Exclusive] T'way and Air Premia Seek to Join World's Largest Airline Alliance

Promotion of Star Alliance Membership
Targeting Gap After Korean Air and Asiana Airlines Merger
Preparing to Meet Requirements Such as Financial Soundness, Route Network, and Service
Consent from Existing 26 Members Also Required

T'way Air and Air Premia are pushing to join Star Alliance, the world's largest airline alliance. It appears they are aiming to move beyond being low-cost carriers (LCCs) by filling the gap left by Asiana Airlines.

According to industry sources on the 24th, T'way Air is currently laying the groundwork for joining Star Alliance. Air Premia has also formed a dedicated team to pursue membership. Star Alliance, established in 1997, is the world's largest airline alliance. It has 26 member airlines worldwide and shares various routes across 1,200 airports. Airline alliances are systems where major airlines collaborate to share routes and mileage programs. Since individual airlines face limitations in securing routes, multiple airlines share routes to expand their operational reach.

In South Korea, Asiana Airlines has been a member of Star Alliance since 2002. However, once it merges with Korean Air, which belongs to another alliance, SkyTeam, maintaining its Star Alliance membership will become difficult. T'way Air and Air Premia are aiming to take over this vacancy. Air Premia initially focused on long-haul routes, and T'way Air is also shifting its identity toward long-haul routes such as Europe and the Americas. Therefore, joining Star Alliance is interpreted as a strategy to publicly shed their LCC status.

However, since the membership requirements are stringent, it is expected to take a considerable amount of time. First, an independent mileage program is necessary. Currently, only Air Premia operates such a program. They must also secure full membership status with the International Air Transport Association (IATA). T'way Air became the first domestic LCC to achieve full IATA membership in 2016, but Air Premia has not yet obtained this.

Quantitative conditions must also be met. This includes scale aspects such as the number of aircraft operated and route networks, as well as safety records, aircraft age, service quality, and punctuality, all of which must reach a certain standard. In the past, Korean Air attempted to join Star Alliance but failed due to safety incidents. Subsequently, Korean Air formed SkyTeam in 2000 with Delta Air Lines, Air France, and AeroMexico. Financial soundness and future growth potential are also evaluated when joining Star Alliance. Even after joining, members must pay tens of millions of won annually in marketing fees similar to membership dues. The fact that most Star Alliance members are full-service carriers (FSCs) is related to this context.

Convincing existing members is also a challenge. Since routes and mileage programs are shared, it is necessary to demonstrate that membership will benefit existing members to gain their approval. An industry insider explained, "Since airline alliances are a kind of vested interest group, if it is not clearly shown that the new member will contribute to the existing members' route networks, membership can often be rejected. However, from Star Alliance's perspective, there is a need to secure a member airline at the hub airport, Incheon Airport, so there is a possibility if this is leveraged."