Airline News
LCCs establish Japan bases, Seoul Air to launch
March 16th 2015
Asiana Airlines’ second low-cost carrier, tentatively named Seoul Air, will launch later this year to focus exclusively on currently unprofitable international Asiana routes, Ryu Kwang-hee, new Seoul Air chief and former head of Asiana’s passenger division, told the Korean Times. Read More » “With the establishment of Seoul Air, improved earnings are expected as the LCC can increase its margin by operating those routes showing low profit on the full-service carrier,” he said. Earlier this year, Asiana officials identified smaller cities in the Japanese market as possible destinations where Seoul Air would be able to make an impact. Asiana has struggled with low load factors on those routes thanks in large part to competition from the likes of fellow South Korean LCCs Jeju Air, Jin Air, T'way Air, and Eastar Jet.
Meanwhile, China’s Spring Airlines is planning to establish its first international base in Osaka. The private budget carrier is reportedly set to base 'several' A320s at Kansai International Airport to increase connectivity between Osaka and China to over twenty cities by 2020. It currently serves Chongqing, Lanzhou, Qingdao, Shanghai (PVG), Tianjin, and Wuhan from Osaka with plans to add Chengdu, Xi'an, Zhengzhou, and Quanzhou from the end of the month.
Spring Airlines will become the third LCC to use Kansai as a base after Peach Aviation and Jetstar Japan. All Nippon Airways (ANA)-affiliate Peach last week announced plans to build a new hub at Sendai International Airport by summer 2017 with an undisclosed number of A320 aircraft to develop multiple new international and domestic routes. It currently has bases at Kansai, Naha and Narita.
