Air Philip's debut drawing mixed responses

Air Philip is set to take off for the first time between Gwangju and Gimpo International Airport in Seoul, June 30. / Courtesy of Air Philip

By Kang Seung-woo

Korea is on its way to hailing its latest small jet airline, as Air Philip is set to make its debut later this month.

As the first Jeolla-based carrier, the company is promoting the positive impact it will bring to the regional economy. North and South Jeolla provinces are located in the southwest of the country.

However, market watchers are mixed on whether it will fare as planned, given that the nation's aviation industry is an already closely contested battlefield.

According to Air Philip, it will start running a route between Gwangju and Gimpo International Airport in Seoul three times each way per day on June 30. As soon as it secures slots at Incheon International Airport, it will also offer flights between Incheon and Gwangju and between Incheon and Muan, South Jeolla Province.

In addition, it plans to add routes to connect Gwangju with Incheon, Gimhae in South Gyeongsang Province and Ulsan as well as future airports at Heuksan Island and Ulleung Island.

It also plans to serve international routes to Japan and other neighboring countries.

For its service, Air Philip will operate one 50-seat ERJ-145 aircraft, manufactured by Brazil's Embraer, along with a plan to expand its fleet to 12 by 2022.

"While building aviation infrastructure for Gwangju and Jeolla provinces, Air Philip will try its best to boost tourism in the region," the company said in a press statement.

Ellis Taylor, Asia finance editor of aviation and aerospace industry website FlightGlobal, agrees with the possible economic effects on the region.

"Any new air service is likely to bring benefits to a local economy, primarily by allowing more tourists to visit," he said.

"Airlines are often economic enablers, as they bring in tourists that can help the hospitality sector to rise, with other flow-on benefits to the local economy."

Taylor added: "Then there are the services from the region that the airline must buy, things like ground handling services, mechanics etc that provide some new employment opportunities."

However, officials of the local aviation industry say it remains to be seen if it would live up to its own expectations.

"I am wondering how much economic benefit it will reap via the operation of the small jet," one official said.

"In addition, its fleet of aircraft, including its future additions, is expected to mainly target routes to Japan as well as other regional destinations. In that respect, it is doubtful the company will make a splash."

Taylor also said, "Those benefits can only be sustained though if the air service is sustained, so it's hard to estimate what the benefit would be for a carrier which has yet to fly."

The currently tough Korean market with so many low-cost carriers (LCC) is another obstacle for the newcomer to overcome.

"That (a very tough market) tends to drive down fares across the board, as the new players have to discount to gain market share. It then becomes a race to see which airlines can withstand that, and usually some will disappear," Taylor said.

"While I wish Air Philip all the best, the fact that Jeju Air, Eastar Jet and T'way Air are all expanding, as well as the other LCCs linked to the larger carriers such as Jin Air, Air Seoul and Air Busan. I am not sure it will be able to sustain a place in the market if it ends up competing against multiple airlines."

Site Map E-paper Subscribe Register LogIn
Site Map E-paper Subscribe Register LogIn