Airlines Expand Routes, Fleets to Beat Recession
Airlines are aggressively expanding their routes and buying new aircraft to counter the recession and high oil prices.
Korean Air will start flying to Riyadh and Jeddah in Saudi Arabia from Friday, and to Colombo in Sri Lanka and two destinations in the Maldives from next month.
The airline is launching a record eight new routes this year including Danang (Vietnam), Gatwick (U.K.) and Nairobi (Kenya). It launched five new routes in 2011 and only one in 2010.
The flag carrier decided to focus on long-haul international routes as competition on short- and medium routes has intensified with the launch of budget airlines. It aims to attract transfer passengers and maximize profit on new routes, taking advantage of its numerous fleet.
"We were able to reap an operating profit of W300 billion (US$1=W1,085) in the third quarter largely because we developed new long-haul routes and lured transfer passengers," said a Korean Air staffer.
Asiana Airlines is expanding its Southeast Asian routes as well as launching a new route from Incheon to Vladivostok on Sunday.
It also plans to respond to growing demand for flights from provincial cities by launching services from Busan to Clark Field in the Philippines and Okinawa, Japan.
The airline is considering new routes between Incheon and Jakarta and Bali in March next year. It had 71 aircraft at the end of last year and now has 80. "We plan to introduce 20 more aircraft by 2015," said an Asiana staffer.
Low-cost airlines are competing on popular short- and medium-haul routes. Jeju Air started flights to Nagoya, Fukuoka, Ho Chi Minh, Qingdao and Guam this year, and will launch a flight from Incheon to Cebu on Nov. 29. It bought four aircraft this year and wants to buy two or three more every year.
Air Busan is active in launching popular routes from Busan to attract local passengers. It opened a new route to Macao this year after the Hong Kong route last year.
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