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The domestic budget airline market is growing crowded. According to the low-cost carrier industry on Sunday, two new carriers namely Southeast Air and Air Korea, an affiliate of Korean Air, will launch services during the first half of this year. Air Pusan, an affiliate of Asiana Airlines, will follow suit in the second half of the year.
Once in operation these three carriers will bring the total number of domestic budget carriers in Korea to five, joining the existing Jeju Air and Hansung Airlines.
Five to six more newcomers, including Incheon Tiger Airways and PurpleJet Airlines, have also announced plans to prepare or launch budget carriers this year.
In addition to the domestic budget carriers, more than a dozen foreign low-cost carriers have already advanced into the Korean market. According to the airline industry, 17 or 30 percent of the 55 foreign airlines that offer services to Korea are considered budget carriers.
Orient Thai Airlines and Cebu Pacific Air are competing with their Korean rivals by charging discount fares that are 50 to 80 percent cheaper than what Korea's traditional carriers charge.
Competition in the budget sector is stiff, yet the Asian market, including South Korea, Japan and China, is considered highly promising as budget carriers have only a 3 to 4 percent share of the overall market.
A Korean Air executive said, "In the domestic market, many travel agencies have already begun purchasing cheaper airline tickets from foreign budget airlines for tour groups. Foreign low-cost carriers are posing a threat to our country's traditional carriers."
(englishnews@chosun.com )
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