Colliding Continents

Monday, November 26, 2007

Korean Air Gives Birth to Air Korea

In order to address the demand for lower cost travel, Korean Air has decided to pursue a plan for a new LCC tentatively called Air Korea. The board has approved an investment of $21.5 billion dollars into the project.

The proposal to create a lower cost carrier was first proposed in June 2007. Before the 2007 is out, a corporate body will be established and by May 2008, Air Korea will launch routs to destinations within China’s Shandong and Hainan provinces from Incheon International Airport, its hub. Routs to Thailand, Malaysia and Japan will soon open gradually expanding its short and long distance network.

While Air Korea will purchase five jets for itself (three A300s and to B737s), maintenance work and operations training will be done by Korean Air. With Korean Air focusing on the higher end luxury traveler and Air Korea targeting budget travelers, both are able to continue providing top of the line services.