News
KAIR receives Hanwha investment
April 21st 2017
South Korean start-up, Cheongju-based KAIR Airlines, has reportedly received a 16 billion won (US$14.1 million) investment from Hanwha Techwin Co. and Hanwha Investment & Securities Co., giving the Hanwha Group conglomerate an almost 20% stake in the fledgling low-cost carrier. Read More »
Hanwha produces parts for CFM International’s LEAP engines and rival Pratt & Whitney’s GTF power plants, with approximately 40% of Techwin’s revenues coming from the engine parts business. The group also operates and manages hotels and resorts across South Korea.
KAIR is currently awaiting AOC approval.
The budget carrier will join South Korea’s busy low-cost scene. Asiana Airlines has both Air Busan and Air Seoul; Korean Air got Jin Air and there are also independent Jeju Air, Eastar Jet and T’Way Airlines. The country’s LCC carriers are looking at revenues exceeding 2.6 trillion won this year (US$2.3 billion).
KAIR aims to start operations in 2018 from Cheongju and will focus initially on services to international destinations in Northeast Asia. “We see enormous potential for the development of a low cost model linking central South Korea with destinations in China, Taiwan and Japan,” said KAIR representative director and chairman, Byung Ho Kang.
To prepare for its launch, KAIR ordered eight A320ceo in March and Airbus master salesman, John Leahy, said the OEM was “impressed” by the business model developed by the airline.
