Securing Expanded Air Routes... T'way's 'My Way'

Giving Up Employment Retention Subsidies to Proceed with New Hiring
Expanding Medium- and Long-Distance Routes by Increasing Fleet to Match Widening Air Routes
Concerns Remain Due to Ongoing COVID-19 Uncertainty

T'way Air's A330-300.
Photo by T'way Air

[Asia Economy Reporter Hyunseok Yoo] T'way Air is taking a different approach from other low-cost carriers (LCCs) by hiring new personnel and expanding its medium-to-large aircraft fleet, even at the cost of foregoing employment retention subsidies. This is interpreted as a plan to secure the growing demand for air routes.

According to the aviation industry on the 2nd, T'way Air has given up about two months of employment retention subsidies and started hiring new staff. The company closed recruitment yesterday for various positions including cabin intern flight attendants, maintenance, and both entry-level and experienced general staff. The final successful candidates will join in September.

The Ministry of Employment and Labor decided in June to extend employment retention subsidies for 90 days, allowing airlines to receive these subsidies until September. However, if an airline like T'way Air proceeds with new hiring, it becomes ineligible for the support. It is understood that T'way Air did not apply for the subsidy this month.

In particular, T'way Air is differentiating itself from other airlines by aggressively expanding its aircraft fleet this year. After introducing its first medium-to-large aircraft, the A330-300, in February, it added the second and third units in April and May. This expanded the fleet to a total of 30 aircraft, including three A330-300s and 27 B737-800s. With the newly introduced A330-300s, T'way Air is expanding medium- to long-haul routes, operating domestic flights such as Gimpo~Jeju and international flights including Incheon~Ulaanbaatar, Incheon~Singapore, and Incheon~Bangkok.

This move is seen as an effort to secure the expanding air routes following the easing of COVID-19 restrictions. According to the Ministry of Land, Infrastructure and Transport, the number of international passengers on domestic airlines from January to June this year was 2,316,193, a 214% increase compared to the same period last year.

However, there are concerns about this aggressive approach. COVID-19 is resurging domestically, and uncertain factors remain with the emergence of variants such as BA.5 overseas. T'way Air's debt ratio reached 7,349.9% as of the first quarter. Although the debt ratio is expected to have decreased following a capital increase in April, uncertainties related to COVID-19 persist.

An aviation industry official said, "While other LCCs focus on short- and medium-haul routes, T'way Air is differentiating itself by expanding into medium- and long-haul routes. It appears to be diversifying its revenue structure in preparation for the post-COVID era, but since medium- and long-haul routes differ from short- and medium-haul ones, it will take a few years to determine whether this strategy will succeed."

This content was produced with the assistance of AI translation services.