The ongoing competition between low-cost carriers in South Korea is increasing in recent times. The popularity of low-cost airlines is on the rise due to fast-growing number of budget-friendly travelers in the Asian country.
Experts from the industry have predicted that ticket sales for the country’s Jeju Air have increased 32 percent, to 450 billion won in 2013 on-year. The company’s operating profit have increased 430 percent to 23 billion won in 2013. Meanwhile, the five low-budget carriers’ share of the overseas passenger market also increased to 9.8 percent in 2013, from the previous 7.5 percent.
The competition is expected to heat up in the near future, as an increased number of budget carriers are looking to enter the Korean market. A report from LIG Investment & Securities said, “Competition for attracting more travelers, especially those who want to go overseas, will become heated as more multinational budget carriers seek to enter the local markets and contend against Korean carriers”.
Experts also said that a strong Korean currency will help the local airlines gain an advantage over foreign rivals. The government will also be offering support for the domestic airlines. The assurance from the Transport Ministry said that it will support the growth of low-cost carriers which will help in creating more jobs in the country.
Photo Credits: The Arrival Store