SEOUL, Korea (November 26, 2007) – Korean Air disclosed details on its low cost carrier operation plans through a corporate filing to Korea’s Financial Supervisory Office today.
The new LCC, tentatively named ‘Air Korea’ will begin operation in May 2008. At a board meeting held on Friday, November 23, Korean Air approved plans to invest 20 billion Korean Won to establish a separate corporate body for the LCC within December.
Air Korea will use Incheon International Airport as its base airport. Starting May 2008, it will launch routes to destinations in China’s Shandong and Hainan Provinces, which is under open skies agreement between Korea and China and thus do not limit airlines’ route operations. Air Korea will also open routes to Japan (except Tokyo), Thailand and Malaysia, all also under open skies. It gradually plans to widen its network to other short-or-mid-distance destinations.
Korean Air first announced its intentions to establish a low cost carrier in early June this year to proactively face the developing trends in the Asian airline industry, providing quality transportation service at a lower price for the benefit of the fast-growing traveling public.
For operation, Air Korea will secure three A300s and two B737s. Aircraft maintenance and operation training will be outsourced to Korean Air, which has nearly 40 years experience in both fields. This outsourcing will ensure the operational safety of Air Korea, which has been indicated as a problem in some other low cost airlines.
Air Korea, maintaining global standards in terms of safety and operation while providing customers with tickets at a lower fare, will offer travelers with a better choice for economic travel. Korean Air and Air Korea, a separately operated subsidiary, will complement each other for a win-win relationship. Korean Air shall retain its global image and concentrate on upper class business travel demands and Air Korea shall focus on travelers seeking shorter distance leisure travel routes.
About Korean Air
Korean Air was named the Best First/Business Class Airline and the Best Frequent Flyer Program in TIME Readers’ Travel Choice Awards 2006. In April and July 2007 respectively, the carrier was named the Best Economy Class in the OAG Airline of the Year Awards and the Skytrax 2006/7 World Airline Awards. It was voted Best Asia/Transpacific Business Class Service by Business Traveler magazine in 2006. With its excellent financial performance in 2005, Korean Air received the "Phoenix Award" from Air Transport World (ATW) for its success in overcoming challenges in the global airline industry.
Korean Air, with a fleet of 124 aircraft, is one of the world's top 20 airlines, and operates almost 400 passenger flights per day to 115 cities in 37 countries. It is a founding member of SkyTeam, the global airlines alliance - partnering Aeroflot, AeroMexico, Air France, Alitalia, CSA Czech Airlines, Continental Airlines, Delta Air Lines, KLM and Northwest Airlines to provide customers with extensive worldwide destinations, flights and services. More on Korean Air's programs, routes, frequency and partners is available at www.koreanair.com
The new LCC, tentatively named ‘Air Korea’ will begin operation in May 2008. At a board meeting held on Friday, November 23, Korean Air approved plans to invest 20 billion Korean Won to establish a separate corporate body for the LCC within December.
Air Korea will use Incheon International Airport as its base airport. Starting May 2008, it will launch routes to destinations in China’s Shandong and Hainan Provinces, which is under open skies agreement between Korea and China and thus do not limit airlines’ route operations. Air Korea will also open routes to Japan (except Tokyo), Thailand and Malaysia, all also under open skies. It gradually plans to widen its network to other short-or-mid-distance destinations.
Korean Air first announced its intentions to establish a low cost carrier in early June this year to proactively face the developing trends in the Asian airline industry, providing quality transportation service at a lower price for the benefit of the fast-growing traveling public.
For operation, Air Korea will secure three A300s and two B737s. Aircraft maintenance and operation training will be outsourced to Korean Air, which has nearly 40 years experience in both fields. This outsourcing will ensure the operational safety of Air Korea, which has been indicated as a problem in some other low cost airlines.
Air Korea, maintaining global standards in terms of safety and operation while providing customers with tickets at a lower fare, will offer travelers with a better choice for economic travel. Korean Air and Air Korea, a separately operated subsidiary, will complement each other for a win-win relationship. Korean Air shall retain its global image and concentrate on upper class business travel demands and Air Korea shall focus on travelers seeking shorter distance leisure travel routes.
About Korean Air
Korean Air was named the Best First/Business Class Airline and the Best Frequent Flyer Program in TIME Readers’ Travel Choice Awards 2006. In April and July 2007 respectively, the carrier was named the Best Economy Class in the OAG Airline of the Year Awards and the Skytrax 2006/7 World Airline Awards. It was voted Best Asia/Transpacific Business Class Service by Business Traveler magazine in 2006. With its excellent financial performance in 2005, Korean Air received the "Phoenix Award" from Air Transport World (ATW) for its success in overcoming challenges in the global airline industry.
Korean Air, with a fleet of 124 aircraft, is one of the world's top 20 airlines, and operates almost 400 passenger flights per day to 115 cities in 37 countries. It is a founding member of SkyTeam, the global airlines alliance - partnering Aeroflot, AeroMexico, Air France, Alitalia, CSA Czech Airlines, Continental Airlines, Delta Air Lines, KLM and Northwest Airlines to provide customers with extensive worldwide destinations, flights and services. More on Korean Air's programs, routes, frequency and partners is available at www.koreanair.com