Airlines under pressure to cut fares

By Lee Hyo-sik

Korean Air, Asiana Airlines and budget carriers have hiked international airfares in recent months backed by stronger demand, drawing complaints from travelers and adding pressure to consumer prices.

To block the bloated prices, the government has decided to get involved by pressuring air carriers to refrain from hiking international airfares and if possible, to slash ticket prices.

Officials from the Ministry of Land, Transport and Maritime Affairs held a meeting with executives of Korean Air, Asiana Airlines and four budget carriers on Oct. 20.

“There has been growing public backlash against airlines as they raise airfares. The increase has also fueled additional inflationary pressure. So, we have sought cooperation from airlines and asked them to keep ticket prices low,” a ministry official said.

In response to the ministry’s request, airlines said many travelers pay less than the increased regular airfares, thanks to a range of discount programs, adding prices will taper off during the off-season. They also said they will consider lowering the costs for people flying to China.

“At the meeting, we talked about the possibility of lowering fuel surcharges on flights between Incheon and cities in China’s Shandong Province. I heard some airline firms are considering lowering the charges. If one airline does, I think the others will likely follow,” a spokesman at one domestic airline firm said.

Currently, passengers pay $22 in a fuel surcharge on a one way flight to Shandong Province, twice as expensive as the $11 charged on flights to Japanese cities.

Budget carriers are more willing to lower airfares to attract more customers from their larger rivals.

Jeju Air has decided to scrap a “super-peak season” price system, which charges 10 percent more, or 7,100 won, on one-way flights between Gimpo and Jeju on weekends from July to August.

Its 88,000-won one-way fare was about 5 percent, or 5,000 won, cheaper than those of the large carriers.

Air Busan is also reportedly planning to expand its discount programs for business travelers and those who buy tickets online. To celebrate the second anniversary of its operation, the budget carrier affiliated with Asiana Airlines plans to offer tickets on Gimpo to Busan and Busan to Jeju routes discounted by up to 60 percent throughout this month.

The government’s move to demand airlines cut airfares follows a series of fare hikes. In August, Korean Air increased its international airfares by up to 10 percent amid surging overseas travel demand. Flights bound for the United States and Canada cost travelers 5 percent more, while those traveling to Spain and other European countries, as well as Australia and New Zealand must pay 10 percent more.

Asiana Airlines soon followed its rival’s footsteps by raising international air ticket prices by up to 12.9 percent.

항공사 요금 인하 압력 커져

최근 몇 달 사이 폭발적인 항공 수요에 맞춰 대한항공 아시아나항공 그리고 저가 항공사들의 국제선 운임 인상을 단행 했는데 이것이 많은 여행자들로부터 불만을 불러 왔고 최근의 물가상승에도 영향을 미치는 걸로 나타났다.

이러한 운임 인상의 악순환을 막기 위해 정부가 직접 나서서 항공사들에게 국제선 운임 인상 자제 그리고 가능하면 비행기표 가격을 내리라고 압력을 가하고 있다.

10월 20일 국토해양부 관계자들은 대한항공 아시아나항공 4개 저가항공사 직원들과 간담회를 열고 국제선 운임 인상 자제를 권고했다.

이러한 정부 움직임에 항공사는 여러 가지 할인프로그램을 운영하고 있어 많은 승객들이 정식으로 고시된 운임보다 낮은 가격에 항공권을 구매하고 있다고 설명하면서 올해 연말 연초는 비수기이므로 항공권 가격이 올라가는 일은 없을 거라고 말하고 있다. 또한 중국 산둥성 지역을 포함한 국제선 노선 항공권 가격을 낮추는 방안을 고려 하겠다고 말했다.