Asiana Airlines Receives Opposition Over Opening Another Carrier Line
kpride, March 22, 2015, 10:19 p.m.
Asiana Airlines plans to set up another low-cost carrier but rival budget airlines are fiercely opposed. Asiana already owns budget carrier Air Busan. Jeju Air, Eastar Jet and T'way Air sent a letter to the Ministry of Land, Infrastructure and Transportation last week calling on the government to block the new budget airline.
Asiana wants to get the new carrier, tentatively named Seoul Air, up and running by the second half of this year. But the three rivals argue that the emergence of a new player would lead to excessive competition.
Asiana spokesman Cho Young-suk said, "More domestic players are necessary to improve the competitiveness of Korea's airline industry at a time when foreign low-cost carriers are stepping up their marketing efforts targeting the domestic market." Suh Hoon-taek at the ministry said the government will ask experts to analyze the feasibility of launching a new low-cost carrier and the impact it would have on the industry.