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Air Busan, Jin Air Offer Seoul-Busan Flights at Competitive Rates to Take Back Customers
By Kim Rahn
Staff Reporter
The nation's budget airlines have failed to corner a slice of the market for the Seoul to Busan route due to the strong dominance of the bullet train KTX ― which runs between the two cities in less than three hours.
Now new challengers are emerging ― Air Busan, Asiana Airlines' budget affiliate, and Jin Air, Korean Air's budget arm.
It is said that the express train has swallowed up around half of the airlines' previous demand between Seoul and Busan since the launch of its operation in April, 2004. KTX's fare is currently 47,900 won, while Korean Air provides the service for 71,900 won, plus a fuel surcharge.
Some low-cost carriers have already failed on the route ― for example, Jeju Air, which started flying the route in 2006, scrapped the service after just six months, and, this year, Yeongnam Air cut its service only a week after its launch.
But new challengers are gearing up to compete.
Air Busan began operating on the route on Oct. 27. It offers the service at 52,400 won, but gives a 15 percent discount to business executives who are regular customers. Including fuel surcharge and airport tax, the fare becomes 54,040 won, not much greater than KTX's tariff. For business travelers, the carrier also offers newspapers.
Jin Air will start Seoul-Busan operations on Jan. 10, four times a day. It has set the fare at 50,000 won on weekdays and 57,600 won on weekends. But discounts are available ― for the first one month of operation, the price will be 40,000 won on weekdays and 51,900 won on weekends.
The carrier will also offer a 10,000 won voucher to all customers making a reservation by Jan. 31, reducing the price to 30,000 won. Even though fuel surcharges and airport tax are included, the fare is just 38,400 won, lower than that offered by KTX.
Jin Air plans to continue offering discounts to businesspeople after the special promotion is over so that it can maintain a competitive edge over KTX.
Experts say the competition between KTX and the new airlines on the route will be stiff. The duration of a journey on the KTX will be shortened when the construction of a new KTX-only track between eastern Daegu and Busan is completed in 2010. KTX users also have easier access to the downtown areas of Seoul and Busan than air passengers, since Seoul Station and Busan Station are located in the center of the cities, while the airports are located on the outskirts.
Some also argue that the prices may have little effect, as most passengers on the route are businesspeople and companies pay travel fees for them.
rahnita@koreatimes.co.kr
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