By Kim Rahn
Asiana Airlines is seeking permission from the government to establish another affiliated budget carrier.
Officials of the airline said Wednesday that they plan to submit an application to the Ministry of Land, Infrastructure and Transport.
The new low-cost carrier, in which Asiana will hold a controlling stake, will use Gimpo and Incheon international airports as its bases, unlike Air Busan, a Busan-based budget airline in which Asiana has a 46-percent stake.
The name of the new airline has not yet been decided.
“We have long planned to launch a budget airline this year,” an Asiana official said. “The scheme hit a glitch following a crash in San Francisco in 2013. But we are continuing the project for a desired establishment this year.”
She said it would take nearly one year to get the ministry’s approval, and would require additional time before flights get underway.
“But the budget airline may have better conditions in obtaining the permission because the company will share Asiana’s knowhow on operations. We hope to launch the service this year,” said the official.
If set up, the budget carrier is likely to operate on some international routes between Korea and Japan, for which Asiana has seen losses.
“While we make profits from popular routes linking Korea and big Japanese cities including Tokyo, Osaka and Fukuoka, we have low occupancy rates for smaller cities. If the budget airline operates on such routes, it will be win-win for both Asiana and the budget carrier.”
Air Busan, which was set up in 2007, has a strong foothold in Busan, and Asiana aims to foster it as a local airline. Besides Asiana’s 46-percent stake, Busan Metropolitan Government and 14 other companies in the region hold the remaining stake.
“The three carriers will have different roles ― Asiana, the premium service provider; Air Busan, a local carrier operating routes linking Busan; and the new budget carrier, which will have low-cost services based in Seoul,” said the official.