New Rule on International Operation Angers Carriers
By Kim Rahn
Staff Reporter
The aviation authority's new rule on the international operation license is drawing a backlash from carriers, especially Korean Air, which planned to launch a budget airline next year for international routes.
They claim the rule discriminates against Korean budget airlines and favors foreign ones.
The Ministry of Construction and Transportation recently announced the new regulation, which says airlines will be allowed to operate non-regular international flights only after operating at least 20,000 domestic flights over two years without accidents involving death.
An airline that operates non-regular international flights for one year will be given a license for regular operations.
The ministry said the nation needed a strict rule about the license to ensure safety amid a growing number of low cost carriers being established here ― Yeongnam Air, JB Airways, and Incheon-Tiger Airways ― that were planning international operations to China, Japan and Southeast Asia.
The carrier that was hit hardest by the new regulation is Korean Air. The nation's largest flag carrier said a few days before the ministry's announcement that it would set up a budget airline in December and launch international flights in May.
Tentatively named Air Korea, the low cost carrier planed to operate flights on short and mid-haul routes to China, Thailand, Malaysia and Japan.
The ministry, however, said the new regulation would be applied to Air Korea as well, although the budget airline may have Korean Air's know-how on maintenance and operation training programs.
It said Air Korea, if established as a separate corporate entity, would be able to operate international flights after two-years of domestic operation. If Air Korea wants to start international operations immediately, it should be included in Korean Air's business arms.
But Korean Air said Air Korea should be a separate corporation, as the two airlines will provide different levels of services. Many foreign carriers also have budget airline affiliates, including United Airlines' Ted and Japan Airlines' JAL Express.
``Considering that more than 15 foreign low cost carriers, the safety of which is not ensured, are currently operating in Korea, regulating a Korean carrier's advancement into the global market is discriminatory,'' Korean Air said in its statement.
``More importantly, the ministry should come up with an objective and a reasonable criteria to evaluate budget airlines' safety systems, and it should grant the license for international operation to carriers that satisfy the criteria regardless of their domestic operation history,'' it said.
On the other hand, Jeju Air, a budget carrier that started domestic operation in June 2006, will be able to fly internationally next year. The airline plans to apply for the international operation license next June and launch charter flights to China and Japan.
Hansung Airlines, another low cost carrier that started operation in August 2005, also plans to start international flights next May, as it will meet the 20,000-domestic-flights criterion by that time.