[Courtesy of Asiana Airlines]
Asiana will stop flights to Vladivostok in Russia's Far East from February 1, and services to Indonesia's resort of Bali and Myanmar's capital from March 1.
The move came after Asiana, one of the country's two premium carriers along with Korean Air, sent an official request to the Ministry of Land, Infrastructure and Transport in October for a business license to launch its second budget carrier called Air Seoul.
Asiana already operates Air Busan, one of South Korea's five low-cost carriers (LCCs).
Air Busan, which flies mostly on the domestic Seoul-Busan route, is a joint venture, while Air Seoul is a wholly owned subsidiary that would operate flights to Japan, China, and Southeast Asia.
Asiana said it was a global trend for full-service carriers to have a low-cost affiliate carrier, dismissing the argument from other LCCs that a newcomer into the competitive industry would damage their financial health and aggravate their global competitiveness.
Jeju Air is the country's largest budget carrier with a fleet of 20 planes, followed by Jin Air, Air Busan, Eastar Jet and T'way Airlines.
Jeju Air, Eastar Air, and T'way have submitted a joint petition against Asiana's second low-cost carrier, saying major carriers should not be allowed to monopolize traffic rights for international routes.
With their domestic market share exceeding 50 percent in 2004, South Korean LCCs are now eager to increase international flight routes or raise more money for business expansion to cope with an aggressive challenge from foreign budget carriers.
Jeju Air, which operates 25 routes in China, Japan, and Thailand, strengthened its top position with an initial public offering in November before expanding its international service.
For long-haul international routes, Jin Air, the low-cost carrier of Korean Air, will add large passenger jets to its existing fleet of 13 planes.
By Charles Lim
reporter
Park Sae-jin
swatchsjp@ajunews.com
