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The Ministry of Construction and Transportation has thrown a spanner in the works of a plan by Korean Air to set up a low-cost carrier tentatively named Air Korea aimed at serving international routes. The flag carrier announced the plan Monday. But ministry guidelines released Wednesday state that low-cost carrier can serve international routes only when they have operated 20,000 domestic flights without accident resulting in death for two years. The regulation was more or less expected, since there had been a related public hearing and the ministry emphasized several times that new budget airlines can operate international flights only after they have accumulated the necessary experience on domestic routes.
Korean Air says Air Korea ˇ°will fully use the expertise and experience of Korean Air when it comes to safety in maintenance and operations.ˇ± The airline accused the ministry of discrimination, saying ˇ°safe and competent domestic low-cost airlines have their wings clipped while foreign budget carriers are advancing into Korea without being checked.ˇ±
But the ministry says it is being fair. ˇ°Air Korea is not a part of Korean Air but a separate operation, so it has to follow the rules that apply to all new budget carriers,ˇ± a ministry official said. He added if Korean Air runs the budget carrier as a part of its business, then the ministry could allow international flights. But Korean Air said "that would be out of line with" its strategy to become a world-class high-end airline.ˇ±
That being so, it looks inevitable that Korean Air will have to modify its plan for a low-cost budget operation.
(englishnews@chosun.com )
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