Longstanding predictions of a boom in South Korea's air transport market are set to be tested in the coming months as several new carriers launch operations, most with a low-cost focus.
Korean Air is planning to launch a long-planned low-cost unit in late July called Jin Air. It will operate Boeing 737-800s and Airbus A300-600s and will start with domestic operations between Seoul Gimpo and Jeju island.
While it prefers not to be called a low-cost carrier, Jin Air is generally following the traditional model, with no assigned seating, bookings over the internet and no frills on its flights apart from basic beverages at no cost.
Another new carrier, Yeongnam Air, is also planning to launch its first commercial flights in late July, initially operating between its Busan base and Jeju, adding Seoul-Jeju and Daegu-Jeju soon after. It will be using Fokker 100s, and will be following a model similar to Jin Air's.
South Korean rules require new airlines to operate for at least two years domestically before flying internationally, but there is intense lobbying for this restriction to be eased. One carrier that has met the two-year rule, privately owned Jeju Air, recently took delivery of its first 737-800 and launched its first international services with charter flights to Japan. It started operating domestically in 2006 using Bombardier turboprops.
Not to be outdone, KAL's main rival Asiana Airlines is working to launch a new low-cost carrier out of the secondary city of Busan later this year. Asiana chief executive Chan Bup Park says the new carrier will operate 737s and will start flying in the winter season. Asiana has a 46% stake in the new airline. Other shareholders include the Busan city government and local businesses.
Several other new airlines are also planned in South Korea, among them a Seoul-based start-up carrier part-owned by Tiger Airways. Another, Kostar Airlines, is being established by a helicopter charter carrier and plans to launch later this year using Fokker 100s.
Source: Airline Business
