no, you are misreading. Gary Leff (the website this is linked to) is the one who says KA is an LCC. Obviously that's wrong (despite our sarcastic whinging/fears on here). He's just one of the blogger types who randomly redistributes half correct information. KA is still absolutely positioned as full-service.

There is nothing in the application about LCC. I think jacobsleather is saying that in jest at Leff's half-arsed post.

And my logical guess is this application would be related to a potential GUM flight, which is a 4-5 hour flight. (see my post above about GUM). Logically, GUM would fit in nicely with the KA/CX strategy of using KA to funnel pax from mainland China. And it is not a well-served destination from mainland China, but it is indeed popular with Asian tourists...right now mainly Taiwan, Japan and some Korea. I could see GUM being quite a smart addition to the KA network.

[Update: Interestingly, UO just cancelled Guam as of June 26. So United Airlines is back to having a monopoly, running it 4x weekly I think on a B738. Interesting!]