Korean LCCs take on flag carriers with long-haul routes

From June 11, Air Premia Inc. is slated to launch service to Oslo, Norway, the longest-haul route for a South Korean low-cost carrier (LCC).

The LCC will offer the flight service for just over two months, until August 15, during the "white nights" period in the northernmost Scandinavian country. Still, the move suggests a blurring of the lines between LCCs and full-service carriers.

Homegrown LCCs will likely gain new growth momentum from the forthcoming merger between the country’s two full-service carriers: Korean Air Lines Co. and Asiana Airlines Inc.

By taking over some golden international routes from Korean Air and Asiana’s lucrative cargo business, the LCCs are expected to spread their wings enough to take on their once-unbeatable rivals, said industry observers.

Riding on the revived travel boom after the end of the COVID-19 pandemic, LCCs are expanding their fleet of planes and offering more spacious seating. Some have also introduced premium services, such as premium economy class.   

AIR PREMIA

Air Premia, owned by two private equity firms, has focused on short-distance routes such as Japan and Thailand, but offers flights to the US cities of Los Angeles, New York and San Francisco and also to Spain.

“We’re considering launching new long-distance routes after securing two new planes in the second half of this year,” said an Air Premia official.

The pitch in economy class for Air Premia’s mid-to-long-haul flights is 33-35 inches, wider than the average 28-31 inches for LCCs and similar to the 33-34 inches for full-service carriers.

The seat pitch in its premium economy is 42-43 inches.

“We don't have to eat steak on the plane if we are offered spacious and comfortable seats,” said an office worker who prefers to travel on a budget airline.

Last month, another Korean LCC T’way Co. started flying to Zagreb, Croatia after becoming the first domestic LCC to launch a regular route to Australia in December 2022.

“From now on, we may need to compete with LCCs to secure routes and could no longer be the only flag carrier in South Korea,” said a Korean Air official.

In the first four months of this year, LCC users for domestic routes reached 6.61 million, almost double that of full-service carriers during the same period.

Fierce competition among nine homegrown LCCs spurred their ascent in the aviation industry.

During the pandemic period, they performed better than full-service carriers because they focused on long-haul travelers. Last year, a number of domestic LCCs posted record-high profits.

Additionally, their smaller organizations allow them to make quick decisions to keep up with changing travel trends.

Industry observers predict the domestic LCC industry could be consolidated and see the emergence of an LCC behemoth if some of them are put on the market and find new owners. 

Write to Jae-Fu Kim and Jung-Eun Shin at hu@hankyung.com

Yeonhee Kim edited this article.