Air Seoul to start operation next week
Asiana Airlines’ new low-cost carrier Air Seoul received approval from the government to begin operations. / Courtesy of Air Seoul
By Yoon Ja-young
Asiana Airlines’ new low-cost carrier (LCC) Air Seoul is set to start flights on July 11, as it has received final government approval for operation.
The Ministry of Land, Infrastructure and Transport (MOLIT) announced Tuesday that Air Seoul passed the government review to get an Air Operator Certificate (AOC).
Following a test flight last month, the LCC also successfully demonstrated ditching and emergency evacuation procedures last week, winning the certificate that is issued after around 1,300 items are inspected. This means the carrier can begin regular service.
Air Seoul will start with flights between Seoul and the country’s southern resort island of Jeju on July 11. It is expected to make four flights daily.
After three months, it will start international flights to Japan, China Cambodia, Malaysia and Vietnam. After three more months, the ministry will carry out a comprehensive inspection of the carrier to see if it has upheld safety standards.
The budget carrier will be chartering three A321-200 airplanes from Asiana but it plans to officially introduce two more planes next year. Like other LCCs, it will have only economy class seating.
Air Seoul’s entry in the LCC market increases the number of players from five to six, which means the industry will face fierce competition.
Asiana Airlines, which also operates Air Busan, has been strong in mid- to long-distance flights, but it has been pressured by the growth of LCCs.
LCCs are expanding their stake in not only domestic flights but also international flights. They took nearly 20 percent of international flights in the country as of February, and are also contributing to expansion of the passenger airline industry. The number of airline passengers totaled 24.4 million in the first quarter, the highest ever despite poor economic conditions.
Noh Sang-won, an analyst at Dongbu Securities, said the LCC industry is likely to continue growing.
“The price competitiveness of LCCs is continuing to be a strength in the passenger airline market. As Koreans who fly overseas are mostly concentrated in short-distance flights, the sustainable growth of LCCs is likely,” she said.
She added that the LCCs that succeed in expanding supply, based on their price competitive edge over full service carriers, will rise as winners in the industry.