Low-cost carriers are finally making their way to the north Asian market, with Korean Air revealing that it intends to launch a subsidiary operation.
KAL has been considering establishing a low-cost affiliate for two years and announced in early June that it has decided to do so some time over the next three years.
The new carrier will operate Boeing 737s on domestic flights and on short- and medium-haul international routes, such as services to China and Japan.
"With this new low-cost carrier, Korean Air will maintain its global carrier image focusing on premium business travel demand, while the low-cost carrier will concentrate on tourist routes, complementing each other in the market for a win-win relationship," says KAL.
Low-cost airlines have been growing rapidly in some parts of the continent, such as South-East Asia and India, but they have been slow to emerge in north Asia. KAL says it has decided to "no longer remain indifferent to invasion of low-cost carriers from China and South-East Asia into the Korean market".
Source: Airline Business
