Competition heating up for budget airlines

Local air lines compete to low international flight cost to attract holidaymakers this summer. Jeju Air Co. and Hansung Airlines Co. start international flight services to Japan in July. They plan to service routes connecting smaller cities in Korea and Japan like flying between Jeju and Hiroshima or Incheon and Kitakyushu. Hansung Airlines also considering launching flights between Cheongju and Japanese cities like Fukuoka this summer. The ticket price is 20 to 50 percent cheaper than regular flight price. The competition has prompted major airline companies to tap the low cost market recently. Korean Air Lines Co., which is the largest market in airlines, set up a new budget airline called Air Korea last year. Air Korea is a plan servicing domestic routes. The new carrier is also set to launch regional flights including to China, Japan and Thailand next year. Other airlines are tapping the international flight market earlier than expected. Asiana Airlines also recently announced an investment in Busan International Air to move into the fast growing budget airline industry.

Opinion.
We talked about airlines many times in class and the professor told us that Asia is hub for correspondence like trade. It is important to expand their international flight services. There are many consumers who want to go to foreign countries that are in close distance like Japan, China or Thailand. Jeju and Hansung airline are known for low budget flight and mostly they fly in domestic. Korea Airline and Asiana Airlines monopolized the international flights. However, low budget flight airlines launched international flights in low cost and it will compete with major airlines. The consumers get the benefits when the companies compete with prices.

Competition heating up for budget airlines

The Korea Herald

By Ko Kyoung-tae

2008.05.27.

20600225_ Entry 12