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Old October 22nd, 2007, 06:45 AM   #1
kjoey
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✈ | 7C/BX/KE™/LJ/OZ*/TW/ZE | Korea-Based Carriers

ANA and Asiana Commence Cabin Crew Exchange


(JCN Newswire) - At a press conference held in Seoul this morning, ANA and Asiana announced the start of a cabin crew exchange from October 28 this year on the Tokyo Haneda-Seoul Gimpo route, as part of their strategic alliance to strengthen ties between the two Star Alliance member carriers.

Under the arrangement, one ANA cabin attendant will be assigned to a daily Asiana operated Tokyo-Seoul return flight, and vice-versa, to ensure that the needs of customers from Japan and Korea are met in their own language.

ANA and Asiana will also take the opportunity to study each other's inflight service training methods to further improve the experience of customers while onboard.

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Old October 22nd, 2007, 07:29 AM   #2
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ASIANA AIRLINES and ANA to enter Equity Partnership


ASIANA AIRLINES and ANA (All Nippon Airways) announced a cross-shareholding agreement as part of their strategic alliance to strengthen bilateral ties across the board.

The scope and level of cooperation was agreed by a specially commissioned task force team, following months of preparation that resulted from the signing of a memorandum of understanding by the CEOs of both companies on December 5, 2006.

Speaking at the press conference, ASIANA President Mr. Joo-an Kang said, “We are delighted to be here today to reveal the next step in our relationship with fellow Star Alliance partner, ANA. What we have announced today will bolster our respective route networks and create synergies for improved profitability and greater customer satisfaction. And the mutual holding of shares in each other’s company is a symbol of our commitment to work ever more closely together to the benefit of our passengers.”

ANA President and CEO, Mr. Mineo Yamamoto, who with Mr. Kang, signed the agreement, added, “ASIANA has been a valued partner of ANA since 1990, and we share similar ideals, histories and service ethos. It is our sincere wish that this new stage in our partnership will serve the needs of customers travelling between both nations and, while bringing commercial advantages to ASIANA and ANA, further the friendly ties between the people of Korea and Japan.”

Collaboration will extend to the following areas:

Cross-shareholding
Each company will hold a US$12,000,000 stake in the other.

Code-sharing
One of the first decisions of the task force team was to implement an extension of the existing ASIANA-ANA code-sharing agreement to all 18 Korea-Japan routes operated by both companies – 154 flights per week – in February this year. In a further move, from July 1st this year, ANA’s international flights between Narita and Honolulu will begin carrying the ASIANA flight code. The companies first began code-sharing on passenger flights between Seoul and Japan in 2000, and also on all freighter flights between the two countries in March 2005.

Sales and Marketing
The two companies will begin preparations for a future ‘triangle service’ between Seoul Gimpo, Tokyo Haneda and Shangahi Honqiao, to provide added convenience to passengers and contribute to a more active exchange between the three countries. To further increase revenue, ASIANA and ANA also will fortify joint corporate sales efforts and share mid and long term corporate goals.

Operations and Airport Services
Cooperation at the 19 overseas airports served by both ASIANA and ANA to explore avenues to reduce costs and improve airport services. The airlines will also share information on spare parts at major overseas gateways, and create a system to support each other in case operational irregularities or emergencies should arise.

Purchasing
Joint purchasing of fuel in designated regions, and exchange of related information.

In-flight Services
Joint cabin crew training and co-development of in-flight materials and entertainment programs in both Korean and Japanese.

Human Resources
Exchange of personnel and joint training programs where deemed mutually beneficial.

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Old October 23rd, 2007, 09:17 PM   #3
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JAL & Korean Air Code Share on Haneda - Gimpo Route


Tokyo, Japan, Oct 11, 2007 - (JCN Newswire) - Japan Airlines (JAL) and Korean Air Lines (KAL) agreed today to expand their code share operations to include the airlines' flights operating between Haneda airport, Tokyo and Gimpo airport in Seoul. The agreement will come into effect on October 28, 2007, and is subject to government approval.

Both JAL and Korean Air operate their own twice daily services between the two airports. The code share agreement will enable them to place their airline designator code on each others flights. Tickets for the new code share flights go on sale from October 17, 2007.

At present, JAL including Korean Air Lines code shares serves South Korea on 14 routes with a total of 214 round-trip flights per week, linking Seoul, Busan and Jeju Island to 8 cities Japan. With the addition of the two new daily code share flights to Gimpo, JAL will offer a total of 228 round-trip flights.

JAL and Korean Air Lines first started code sharing in August 1 2004 with flights between Seoul and the regional Japanese cities of Komatsu, Niigata and Sapporo.

http://www.jal.com/en/press/0001143/1143.html

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Old October 23rd, 2007, 11:56 PM   #4
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Aeroflot, Air France-KLM, Korean Air looking to buy CSA


PRAGUE (Thomson Financial) - Aeroflot, Air France-KLM, Korean Air and several Russian financial investors have been in talks with Czech airline CSA as they are considering bidding for the state-run air carrier in its planned privatisation, a source close to the preparations of the sale told Thomson Financial News.

'CSA has been talking to Aeroflot, which is part of the Sky Team alliance with CSA, and a number of Russian financial investors,' one source said.

'Air France-KLM and Korean Air have also expressed interest and have been in contact with CSA over the possibility of an acquisition,' the source added.

CSA board chairman Radomir Lasak denied in a statement this afternoon that the company would talk to investors about the possibilities and the way of privatising the airlines, adding that the sale is a matter of the owner, not the management of the company.

The Czech cabinet plans to sell the loss-making air carrier as soon as it at least breaks even, which is expected in 2008, and should receive proposals from the transport minister and the finance minister for the method of the sale by March.

Russian companies are particularly interested in the Czech company as an acquisition in the central European region would open their way to the West, the source said, adding that CSA's biggest asset is its dense worldwide route network.

When contacted by Thomson Financial News, Aeroflot declined to comment on possible interest in CSA. Air France-KLM denied it was looking to buy the Czech air carrier.

Sources close to the sale preparations say that CSA management is also considering floating a minority stake of the airline on the Prague stock exchange and later selling the controlling stake to strategic investors at a premium.

'This is the CSA management idea... they probably think that this way they can raise more money, but the government isn't likely to agree with such a scenario as this kind of an IPO could be likely abused by speculators,' the source close to the sale said.

According to sources from the airline, CSA equity value was estimated at 5-6 bln crowns in 2005 and fell to 3 bln crowns last year.

CSA declined to comment on potential bidders for the company and said its 'indicative value' has been rising due to the 'curative strategy' of its current management.

http://uk.biz.yahoo.com/23102007/323...a-sources.html

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Old October 24th, 2007, 12:36 AM   #5
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Asiana Airlines to add two Korean destinations to Beijing


BEIJING, Oct. 20 (Xinhua) -- Asiana Airlines from the Republic of Korea will launch flights from Beijing to Gwangju and Keyinwikion October 30 and November 7, respectively. By then, Asiana will operate four routes from Beijing to ROK.

With the flight dubbed OZ342, Airbus A321 aircraft will take off from Beijing every Tuesday and Friday at 10:55 a.m. and reach Gwangju at 14:00. The returning flight OZ341 will be back at Beijing at 16:25. With the flight dubbed OZ373, A321s will take off from Beijing every Wednesday and Saturday at 10:55 a.m. and reach Keyinwiki at 13:50.

This year marked the 15th anniversary of the establishment of diplomatic relations between China and ROK.

ROK is now China's biggest inbound tourism market and the number of Chinese tourists to Korea ranked the second. Last year, some 900,000 Chinese tourists visited ROK.

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Old October 24th, 2007, 04:44 AM   #6
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Airlines Vie for Quality In-Flight Meals

An Asiana Airlines flight attendant and chefs from Toh Lim, La Cucina, and Din Tai Fung show in-flight meals made by the restaurants, Thursday. The carrier will provide the meals to first and business class passengers.
Courtesy of Asiana Airlines

By Kim Rahn
Staff Reporter

In-flight meals are evolving.

Airlines around the world are competing to develop distinctive menus that satisfy both passengers' tastes and the gourmet trend of healthy food.

Asiana Airlines will join hands with Toh Lim, a Chinese restaurant at Lotte Hotel in central Seoul, within the month.

It is the first time for a Korean carrier to have in-flight meals made by an outside restaurant.

The restaurant's highest quality course comprised of seven to eight dishes, from appetizer to main and desert, will be served in first class on flights to Los Angeles, and business class starting next month.

The airline also plans to adopt a course menu including lobster and steak from La Cucina, a luxury Italian restaurant in central Seoul, starting this month for first class, and next month for business class.

Since September, it has already provided first class passengers on the Incheon-Los Angeles route with dimsum from Din Tai Fung, a Taiwanese restaurant selected as one of the world's top 10 restaurants by the New York Times.

"After reviewing passengers' reaction, we plan to expand the menus from the restaurants and the routes we provide the service to. We are considering cooperating with more restaurants,'' an Asiana official said.

Korean Air keeps developing Korean-style, healthy in-flight meals with organic ingredients.

It started providing homemade-style red ginseng tea to passengers in first and business classes on the Gimpo-Haneda route last month. Another kind of red ginseng drink is offered to economy class passengers.

The service will be expanded to the Gimpo-Hongquia route that is scheduled to launch this month.

The carrier's menus of "bibimbap'' (rice with assorted vegetable) and "bibim noodle'' (spicy cold noodle) have already gained popularity, winning international awards.

It plans to develop more Korean-style dishes. "We are upgrading in-flight meals, as meals with both good taste and nutrition are an essential factor for an airline to become a quality one,'' a Korean Air official said.

The carrier, which supplies in-flight meals to 40,000 people a day, plans to invest 3.5 billion won in expanding an in-flight meal factory in Busan and remodeling another factory in Incheon next year.

Cathay Pacific Airways has adopted Korean bibimbap on its in-flight menu for business class passengers on flights from Hong Kong to Korea in September. The service will be expanded to economy class.

Since August, the carrier also provides a new Chinese menu, which it developed with advice from famous Hong Kong cooking expert Annie Leong, to passengers in first and business class on flights departing from Hong Kong. More than 30 dishes, such as baked duck stuffed with glutinous-rice, are available.

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Old October 27th, 2007, 06:34 AM   #7
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Shanghai-Seoul direct flights to start October 28, 2007


Oct. 25, 2007 (China Knowledge) – South Korea's Ministry of Construction and Transportation has announced that direct flights between Seoul's Gimpo Airport and Shanghai's Hongqiao Airport will commence on Sunday.

Gimpo and Hongqiao, which have been mainly serving domestic flights, were the main international air terminals for Seoul and Shanghai before being replaced by Incheon and Pudong in 2001 and 1999.

Four airlines, namely Korean Air, Asiana Airlines, China Eastern Airlines and Shanghai Airlines will be operating the new route between the two cities.

Liang Nan, deputy director of the General Administration of Civil Aviation of China, has mentioned plans for the new route during the signing of a flight agreement between Tokyo and Shanghai in June this year.

Together, Tokyo's Haneda airport, Shanghai's Hongqiao airport and Seoul's Gimpo form the golden triangle of business exchanges between the three cities.

www.chinaknowledge.com

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Old October 31st, 2007, 01:25 AM   #8
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Airlines Start Discount Sale

By Kim Rahn
Staff Reporter

Airline carriers have started offering bargains for business class seats this fall.

Northwest Airlines is offering business class seats to U.S. cities at around three million won on its Web site www.nwa.com.

The roundtrip airfare between Seoul or Busan and Los Angeles, San Francisco, Seattle or Portland is 2.75 million won during weekdays, and 2.85 million won on weekends. The fare for other American cities is 3.7 million won during weekdays, and 3.8 million won on weekends.

The fare does not include airport tax and fuel surcharge. Those wanting the seats should make reservations before Nov. 4, and those having tickets should depart Korea between Nov. 12 and Jan. 4 next year and come back by April 3.

The prices are far below those of Korean Air and Asiana Airlines _ more than five million won and some 4.46 million won, respectively.

Also, Northwest provides 50 percent more mileage points to business class passengers than economy class, while Korean Air provides 25 percent. As the two carriers belong to an airline alliance Sky Team, Korean passengers can convert the bigger mileage from Northwest to Korean Air.

Air France offers business class tickets for a roundtrip between Seoul and Paris at about 2.23 million won currently during the low-demand season.

The carrier has code-sharing operations with Korean Air on the route, so passengers may be able to take a Korea Air flight with an Air France ticket, meaning they can use Korean Air's business class with cheaper airfares.

For trips to Germany, the business class airfare of Lufthansa German Airlines between Korea and Frankfurt is around 4.9 million won.

Asiana Airlines offers special bargain for flights to Southeast Asia. On its Web site www.flyasiana.com, fares between Incheon and Manila, Saipan, Taipei or Hong Kong is 900,000 won to one million won. Tickets to Bangkok, Singapore and Hanoi are offered at 1.2 million won.

The fares differ according to date.

Cathay Pacific Airways presents a weekend package that includes a roundtrip business class ticket and accommodation at five-star hotels, such as the Mandarin Oriental Hong Kong, and the Shangri-La Hotel and InterContinental, Hong Kong.

The fare begins from 859,000 won. The package is available only on weekends up to March 24.

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Old November 3rd, 2007, 02:18 AM   #9
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Korean Air Goes Green With Desert Tree Project



Korean Air is working on a project to build a large green park in the Kubuqi Desert of China's Inner Mongolia.

As part of the project, Hanjin Group Chairman Cho Yang-ho and some 70 Korean Air executives held a tree-planting event in the desert on Wednesday, Korea's largest airline said Thursday.

Korean Air is a subsidiary of Hanjin Group. The deserts of Inner Mongolia are the source of sandstorms, and 40 percent of the sandstorms that afflict Korea come from them.



Wearing a pair of blue jeans, the chairman joined his youngest daughter and the airline's PR manager Cho Hyun-min at the tree planting.

Korean Air said it plans to create a 600 hectare park in the Kubuqi Desert by 2011, with 1.8 million white poplar, pine and other trees that can thrive in the desolate environment.

Hanjin Group practices green management, Chairman Cho said, so in addition to the forestation project Korean Air will introduce next-generation aircraft like the Airbus A380 and Boeing 787, which produce less noise and fewer emissions, as part of its efforts to protect the environment.

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Old November 5th, 2007, 10:20 PM   #10
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Pics from Jeju International Airport

http://thebluesky.info/106


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Old November 19th, 2007, 09:29 PM   #11
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Korean Air Welcomes China Southern to SkyTeam


Seoul, Korea (November 19, 2007) /China Newswire/ — Korean Air, the flagship carrier of South Korea and a founding member of SkyTeam, today welcomed the eleventh full member - China Southern Airlines – to the alliance with all members at an event held in Beijing.

As a founding member of SkyTeam and the sole Asian airline in the network, Korean Air acted as the sponsor airline of China Southern. Safety requirements, service quality levels, IT system integration, frequent flyer mileage program tie-up are some of the numerous items that need to be standardized in order to become a full member. Since August of 2004 when China Southern first signed its intention for SkyTeam membership, Korean Air helped the newcomer through the rigorous process by providing know-how and necessary IT technology support.

"We are delighted to welcome China Southern Airlines to the SkyTeam. China Southern Airlines is the largest airline in China and we are confident that the joining of this strong member will greatly increase SkyTeam's reach in Asia. We look forward to fostering closer ties with our new Chinese partner to expand our presence in the country," said Mr. Yang-ho Cho, Chairman and CEO of Korean Air.

Korean Air can provide a wider reach to global travelers headed for China, connecting China Southern's vast domestic network with more than 20 destinations served by Korean Air.

Last year, Korean Air announced China as its second home market, and to implement the "China-as-second-home-market" strategy and enhance customer service, it will expand the cooperation with China Southern. The two airlines already have codeshare in place, which will gradually be expanded. The two airlines began frequent flyer mileage program tie-up on November 1. Starting December 18, the two airlines' will swap cabin attendants on some of their China-Korea routes.

With the addition of China Southern Airlines, SkyTeam now serves approximately 428 million annual passengers through a worldwide system of nearly 16,400 daily flights covering 841 destinations in 162 countries.
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Old November 27th, 2007, 06:18 AM   #12
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KAL's Budget Carrier to Launch in May


Korean Air will start operating a budget airline next May, tentatively named Air Korea.

The nation's biggest carrier said Monday that it has decided to set up a low cost carrier in December with 20 billion won, and launch international flights in May.

Having Incheon International Airport as its hub, it plans to operate flights to China's Shandong and Hainan provinces, Thailand, Malaysia and Japanese cities except Tokyo. It will later expand to short and mid-haul routes.

The budget carrier will use three A300 and two B737 aircrafts, while taking advantage of Korean Air's know-how on maintenance and operational training programs to ensure safety.

"Air Korea will seek high safety standards and low airfare prices, so that a wide range of people can travel safely by air at reasonable prices,'' a Korean Air official said.

"Korean Air and Air Korea are expected to complement each other, with the former focusing on high-end business travel and the latter concentrating on short and mid-range tourism destinations,'' he said.

Korean Air's decision has come amid the growing budget air travel market in Asia. In Korea, 15 foreign low cost carriers are currently in operation, including Cebu Pacific Air and Orient Thai Airlines. Around three more will start operating in the first half of next year.

Asiana Airlines, the second-largest national carrier, said it is not considering setting up a budget airline, saying it expects the Ministry of Construction and Transportation to come up with strict criteria on granting operation licenses. "Air Korea is one of the new budget airlines in the country, and it is not logical to think that it will have the same operational skills as Korean Air, merely because it is financed through Korean Air,'' the carrier said in the statement.

The ministry will announce new operational license regulations soon. It plans to grant an international operation license to carriers that have two to three years of domestic operation experience to ensure safety.

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Old November 27th, 2007, 07:16 AM   #13
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The boom in budget carriers is finally coming to South Korea...

Air Korea - May 2008 (Connects to AirAsia in Malaysia)
Incheon Tiger Airways - 2009 (It will connect to Tiger Airways Singapore right)
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Old November 27th, 2007, 08:23 AM   #14
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Originally Posted by ignoramus View Post
The boom in budget carriers is finally coming to South Korea...

Air Korea - May 2008 (Connects to AirAsia in Malaysia)
Incheon Tiger Airways - 2009 (It will connect to Tiger Airways Singapore right)
Yes, I know about Incheon Tiger Airways but did not know that AirAsia was part of Air Korea? I should look into that. Anyways, it's good that AirAsia is in the mix, as I know that they successful in Malaysia.
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Old November 27th, 2007, 09:01 AM   #15
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Jeju Air Marks 1 Million Passengers


Jeju Air, one of the nation's two low cost, regional carriers, reached the one millionth passenger mark, Monday, 17 months after its launch of operations in June last year.

The Jeju Island-based airline aims to advance into the international market through the use of jetliners.

The one millionth passenger, a 30-year-old Seoul resident on the carrier's flight from Jeju to Gimpo, was given a coupon which allows him to take 100 Jeju Air domestic flights for free.



It took 10 months for the airline to reach the 500,000 passenger mark from June 2006 to last April, and then just seven months to double the number, with an average of 2,420 passengers boarding per day.

In the case of Korean Air, its 101 passenger jets carried 22.3 million passengers both at home and abroad in 2006.

Jeju Air currently operates on the Seoul-Jeju and Busan-Jeju routes with four turboprop Q400 aircrafts. The average boarding rate reaches 85 percent, but hits 95 percent during the summer vacation season.

The carrier takes up 10.2 percent of the total air travel market between Seoul and Jeju, and 9.6 percent between Busan and Jeju.

Among its passengers, men in their 30s and women in their 20s were the largest and second largest groups, indicating young people who want trips with friends or family members prefer the budget carrier.

Jeju Air's airfare is about 70 percent that of Korean Air and Asiana Airlines.

The carrier aims to go global and upgrade its facilities and services, and as the first step, will start operations of B737-800 passenger jets.

It currently has five 74-seat Q400 turboprop made by the Canadian company Bombardier. It recently announced it would adopt two 189-seat B737-800s, the newest among Boeing's 737 series, next April. The carrier plans to add two to three of the aircraft annually until 2013 for a total of 15.

"We'll either buy or lease new planes every year. Along with the adoption of jetliners in April, we'll be able to reach the two million passenger mark in the latter half of next year,'' an official of the airline said.

"We'll increase capacity by introducing mid-sized aircraft and become Korea's third national flag carrier,'' he said.

The jetliners will be put on the Gimpo-Jeju route and an international route which Jeju Air aims to begin operating in the second half of 2008. It plans to operate charter international flights to China or Japan, making it a regular service by 2009.

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Old November 27th, 2007, 10:20 AM   #16
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Originally Posted by kjoey View Post
Yes, I know about Incheon Tiger Airways but did not know that AirAsia was part of Air Korea? I should look into that. Anyways, it's good that AirAsia is in the mix, as I know that they successful in Malaysia.
No I didn't mean that.

What I meant was passengers on Air Korea can fly from Seoul (Air Korea Hub) to KL (AirAsia Hub) and then onwards to the Gold Coast instead of just stopping in KL. Thats great for passengers, having the budget airline coverage extended even though they will essentially be travelling on different airlines.

Once Incheon Tiger flies to a hub destination served by Tiger, passengers can too travel from there to another further destination. Thats great.

Of course, Tiger has yet to hub that a destination closer to Seoul for that to happen. Soon perhaps...since Tiger will hub in one city per year from now on or so.

In all, its great for the aviation industry in South Korea, and great choice in selecting Malaysia as one of its destinations, since accessibility to AirAsia means passengers can fly onwards from there. Business aside, FOR PASSENGERS, having a hub in Seoul is beautiful news since they now have access to both NEA and SEA.

With budget flights commencing between Singapore and KL in 2008, anyone can fly budget from Singapore to KL on AirAsia and then to Seoul. Likewise, in the future we can fly from Singapore to (unknown hub) on Tiger and then connect to Incheon Tiger to Seoul. The gap between SEA and NEA is being bridged.

Unless someone offers medium haul from KL - Seoul etc.

Last edited by ignoramus; November 27th, 2007 at 12:11 PM.
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Old November 27th, 2007, 11:30 AM   #17
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The potential for Korea-based low cost carriers is not so much on improving connectivity with Southeast Asia, but rather the huge Chinese market that is within short-haul range. Beijing, Shanghai, and Tokyo are all within logical distances for the established short-haul model to make Seoul a potentially very competitive hub for low cost travel between the 3 countries. That is, assuming the regulatory approvals can be negotiated with the other sides.
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Old November 29th, 2007, 06:23 AM   #18
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Korean Air's budget carrier plans hit a snag

SEOUL, Nov 28, 2007 (AFP) - Plans by Korean Air to launch a low-cost international airline next year hit a snag Wednesday as authorities introduced strict guidelines on the booming budget carrier business.

South Korea's transportation ministry said it would enact new rules requiring all budget carriers to run domestic flights for at least two years before operating international flights.

The announcement came just two days after South Korea's biggest carrier Korean Air said it would launch a separate, low-cost international airline in May 2008 and turn it into Asia's biggest budget carrier by 2012.

The planned new carrier, Air Korea, will initially operate short-haul international routes to China, Japan, Thailand and Malaysia, Korean Air said.

The transportation ministry made it clear that the new gudelines would require Air Korea to fulfil the two-year mandatory service at home.

"There is no exception in applying the new guidelines to the budget carriers, already operating or to operate in the future," a ministry official handling air transport policy told AFP.

"Air Korea, as a separate unit, should abide by the rules."

Now operating in South Korea are two low-cost domestic carriers. One, Jeju Air, has also announced plans to expand internationally.

Korean Air said it would set up Air Korea as a separate unit with three Airbus A-300s and two Boeing 737s on paid-up capital of 20 billion won (21.5 million dollars).

Korean Air said it would concentrate on "upper-class business travel demands," with Air Korea focusing on travellers seeking shorter holiday trips.

Budget ticket prices would be set at between 75 percent and 80 percent of the parent company's prices, it said.

Discount carriers now make up 20 percent of the US and European air travel market and are expanding quickly in China and Southeast Asia.
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Old November 30th, 2007, 12:03 AM   #19
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Originally Posted by hkskyline View Post
Korean Air's budget carrier plans hit a snag

SEOUL, Nov 28, 2007 (AFP) - Plans by Korean Air to launch a low-cost international airline next year hit a snag Wednesday as authorities introduced strict guidelines on the booming budget carrier business.

South Korea's transportation ministry said it would enact new rules requiring all budget carriers to run domestic flights for at least two years before operating international flights.

The announcement came just two days after South Korea's biggest carrier Korean Air said it would launch a separate, low-cost international airline in May 2008 and turn it into Asia's biggest budget carrier by 2012.

The planned new carrier, Air Korea, will initially operate short-haul international routes to China, Japan, Thailand and Malaysia, Korean Air said.

The transportation ministry made it clear that the new gudelines would require Air Korea to fulfil the two-year mandatory service at home.

"There is no exception in applying the new guidelines to the budget carriers, already operating or to operate in the future," a ministry official handling air transport policy told AFP.

"Air Korea, as a separate unit, should abide by the rules."

Now operating in South Korea are two low-cost domestic carriers. One, Jeju Air, has also announced plans to expand internationally.

Korean Air said it would set up Air Korea as a separate unit with three Airbus A-300s and two Boeing 737s on paid-up capital of 20 billion won (21.5 million dollars).

Korean Air said it would concentrate on "upper-class business travel demands," with Air Korea focusing on travellers seeking shorter holiday trips.

Budget ticket prices would be set at between 75 percent and 80 percent of the parent company's prices, it said.

Discount carriers now make up 20 percent of the US and European air travel market and are expanding quickly in China and Southeast Asia.
I would think this would effect Incheon Tiger Airways as they were planning to operate domestic for about a year and start international operations to China and Japan from Incheon.
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Old November 30th, 2007, 06:28 AM   #20
ddes
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Well at least Incheon Tiger was planning to run domestic for 1 year, now it's just 1 extra year...

Air Korea wanted to begin international flights immediately..

Let the cannibalization begin.
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