Korean Air will be reinstating a codeshare agreement with one of its former partners, but not necessarily because it wants to…
Alaska & Korean Air restore codeshare agreement
Alaska Airlines and Korean Air have just filed with the Department of Transportation (DOT), requesting permission to launch a codeshare agreement (thanks to Steve for flagging this).
Alaska flies from Seattle (SEA) to Seoul Incheon (ICN), and the idea is that Alaska wants to codeshare on Korean Air’s flights from its Incheon hub to Bangkok (BKK), Busan (PUS), Delhi (DEL), Hanoi (HAN), Ho Chi Minh City (SGN), and Singapore (SIN). It seems this is a unilateral codeshare, so Korean Air will not be codesharing on any Alaska flights.
With a codeshare agreement, Alaska will be able to place its “code” on Korean Air flights between those cities. When it comes to airline partnerships, a codeshare agreement is more than an interline agreement, and less than a joint venture.
On the surface, this is a totally logical level of cooperation, and it’s a win-win. Alaska flies to Incheon, and presumably the routes on which it is requesting to codeshare are those with the highest passenger demand. So this will allow both airlines to fill seats on their respective flights.
Fair enough, right, so what’s the problem? Well…
What’s really driving this new codeshare agreement?
Delta and Korean Air have a transpacific joint venture, which is the closest level of cooperation you can have between airlines. Delta’s transpacific network is based so heavily around funneling passengers through the Incheon hub (though Delta is finally adding flights to other destinations in Asia).
Delta even owns a stake in Korean Air, and if we’re being honest, Delta is a very controlling airline partner. That’s understandable, because the airline has the clout to request that from its partners.
Alaska and Korean Air had a close partnership for many years, including a codeshare agreement, reciprocal points opportunities, etc. However, over the years, that was progressively scaled back. One would logically assume that Delta had a part in that, and pressured Korean Air to cut ties with Alaska, since Alaska will partner with just about anyone, as long as it’s a win-win.
Keep in mind that Delta has a special dislike for Alaska, given that it has been trying to grow in Seattle and go head-to-head against Alaska, but Alaska has stayed dominant. Delta is so used to going into markets and being number one, while the story has been a bit different in Seattle.
Delta wants to do everything it can to hurt Alaska, so why is this happening? Well, it appears that this isn’t so much voluntary on Korean Air’s part, but instead, it’s a remedy from the Korean Air and Asiana merger. With this, Korean Air had to agree to codeshare with competitors in markets that those competitors don’t serve. In other words, Korean Air is being forced into codesharing with Alaska on intra-Asia flights.
So while a codeshare agreement is happening, don’t expect any sort of restoration of loyalty program perks, since I can’t imagine that Korean Air actually wants this partnership (and it’s not required to restore loyalty perks).
For what it’s worth, Alaska is in oneworld, and hopes to join the transpacific joint venture with American and Japan Airlines. However, that doesn’t preclude a codeshare agreement, especially out of a hub without much oneworld service.
Bottom line
Alaska and Korean Air have requested permission to launch a codeshare agreement, which really represents the restoration of such a partnership. The idea is that Alaska could place its code on Korean Air’s flights between Incheon and select destinations in Asia.
On the surface, this is a logical commercial agreement. The reason it’s a bit surprising is because this kind of an arrangement was cut some time back, and I have to imagine that Delta played a part in that. What’s really happening here is that this is a concession that Korean Air has to make as part of its merger with Asiana, to ensure competition.
What do you make of Alaska and Korean Air once again strengthening ties?
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