With the introduction of low-cost Korean airlines like Jeju Airlines and Eastarjet, overseas carriers from Singapore and Thailand have also decided to join the local low-cost flight market.
Korea's first no-frills airline, Jeju Air, premiered in 2006, and was soon followed by Hansung Airlines, Yeongnam Air, and Incheon Tiger Airways. While many of them eventually folded due to financial problems, Jeju Air, Jin Air, Air Busan, Eastajet and Tway Air currently account for nearly 50 percent of the domestic air market.
Jeju Air, Jin Air, Air Busan and Eastajet all operate flights to Japan, China, and Southeast Asian countries. Jeju Air has 11 routes to four countries, including Japan, Thailand, Hong Kong, and the Philippines, while Jin Air flies to six countries, including China and Guam.
As of July 21, Jeju Air has flown more than 100 million customers to their destinations, helping to prove the viability of the low-cost model in Asia.
Japanese airlines have launched three no-frills carriers, including Air Asia Japan, a joint venture from All Nippon-Airways (ANA) and Malaysia's Air Asia, which will begin service between Japan and Korea next year. Air Asia carries nearly 26 million passengers annually on its 110 airplanes. Japan Airlines (JAL) also has teamed up with Jetstar, Qantas Airways' low-cost carrier. Singapore Airlines and Thai Airways are preparing low-cost airlines for routes in Northeast Asia next year.
An official from Jin Air said, "The low-cost airlines industry in Asia will be very competitive, as it only takes a few hours to fly between major cities."
source: APEC-VC Korea
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