Since the global emergence of low cost carriers (LCC) in airline industry, shift of business is observed. LCC are gaining more market share as compared to conventional airlines known as full service carriers (FSC). LCC manage to cut costs by cutting extra services and make it possible for passengers to travel on much lower cost. Introduction of LCC has brought change in airline industry throughout the world; similarly it has emerged in South Korea as well. This paper performs competition analysis on South Korean Airlines using Lotka-Volterra (LV) model, examines and discusses the effect of emergence of LCC on FSC. LV model is also used for forecast.