[photopress:air_korean_budget.jpg,full,alignright]Most major airlines see budget airlines as a threat. (The exception appears to be Cathay Pacific where the managing director, Tony Tyler, in an interview downplayed it as a potential problem.)
The potential problem will come from many directions. From Korea comes Jeju Air and Hansung Airlines, which have been operating domestic services for more than two years and plan to launch international services in the second half of this year.
They are expected to compete most on routes between Korea and China.
Typically budget airlines charge 50% less than the traditional services although, of course, the schedules may not be quite so convenient, the inflight service spartan and the ticket totally non-flexible.
An official with the airline industry said, ‘I expect that there will be a huge influx of low-cost flight services at various fare ranges launched on routes between Korea and Japan and China, with which Korea has already signed aviation agreements. New budget routes will also likely be opened from Shandong and Hainan to more remote areas throughout China.’
Source: The Chosun Ilbo