|
Budget carriers in Korea are rushing to offer international flights to Japan, China and Southeast Asia. Realizing the limited profits that can be made from offering domestic flights only, four budget carriers -- Jeju Air, Jin Air, Air Busan and Eastar Jet -- are pushing to operate international flights. They will make international flights more affordable by pricing tickets between 70 to 80 percent of the costs of regular carriers.
¡ß Fully Fledged Competition
Jin Air, a subsidiary of Korean Air, the country's top carrier, said on Monday that it plans to offer international flights from October, starting with tourist spots in Southeast Asia, Japan and China that are short to mid-range routes from Korea. It plans to launch flights to Bangkok, Thailand and Macau and expand routes to Osaka, Japan and elsewhere. Less than a week ago Air Busan, a unit of number two carrier Asiana Airlines, announced at a press conference that it plans to offer flights to Japan as early as March next year.
On Mar. 20, Jeju Air became Korea's first budget carrier to go international. Jeju Air offers flights linking Incheon and Osaka (one round-trip every day) and Incheon and Kitakyshu (three flights a week).
An official at Eastar Jet, based in North Jeolla Province, said the carrier plans to begin international flights during the first quarter of 2010. The official said routes to China and Japan are being considered, adding that a variety of routes is being studied, including flights that depart from Jeju and Cheongju airports.
As part of the efforts, each carrier is planning to purchase a B737 airplane and other passenger jets capable of carrying 130 to 150 people.
¡ß Cheaper Flights for Fliers
There is a strong possibility that prices of tickets may decrease even further as competition heats up between carriers. This means customers will get to enjoy even more affordable flights. The budget carriers believe there is enough demand to sustain all of them on international routes. They say they will be able to profit, since only 30 to 40 percent of all passengers traveling from Korea to Southeast Asia fly aboard major carriers.
But an industry source said the number of profitable short-range flights is limited, leading to intense competition in international flights. Maintaining price competitiveness will be the factor that determines success or failure for these budget carriers, the source added. In other words, cutthroat competition may continue, but on a different playing field.
(englishnews@chosun.com )
|
