New low cost carrier wants to drive airfare prices down by 30 percent, launching in 2018.
A new airline wants to lower airfare prices from South Korea by flying fuel-efficient aircraft out of an alternate base, with the goal of launching new flights as soon as April 2018. Bloomberg reports Aero K Airlines, announced as the nation’s seventh low cost carrier, wants to attract flyers with growing wealth and a desire to see Asia.
Driven by a demand for travel to destinations including Hong Kong and Japan, airline founders believe conditions are right for introducing a new low cost carrier. To keep costs low, executives plan on flying the Airbus A320 with over 180 seats. The carrier will base themselves at Cheongju International Airport (CJJ), located 60 miles south of Seoul. While the alternate airport is a distance away from the population center, the airline says they will save flyers through reduced fees. Through this plan, the founders and investors believe they can drive down prices by as much as 30 percent while staying competitive and profitable in the market.
The first routes are expected to begin flying to China, Japan and Taiwan, three hours or less from their headquarters. Profitability is expected by their third year, when expansion could include adding A320neo airframes to their fleet.
Although other airlines currently fly out of South Korea, the marketplace may not necessarily be over-saturated with carriers. According to research completed by Bloomberg, nearly 20 percent of international flights originating from the peninsula nation are operated by low-cost carriers.