South Korea’s First Budget Airline to Take Off in 2008
South Korea’s largest airline, Korean Air Co. announced the launch of their new low cost airline to be in May 2008.
Following the recent news of Asia Air’s low cost airline expansion in partnership with Sir Richard Branson, Korean Air Co. will now join the growing competition for budget fares within Asia.
The predominant focus for the South Korean carrier is to entice more tourists to the country by offering short haul flights to the Shandong and Hanna provinces in China, Japan, Malaysia, and Thailand. Provisionally named ‘Air Korea’, the airline will have an initial cash capital of $21.5 million from its parent company, for the funding of three Airbus 300’s and two Boeing 737’s.
In taking advantage of the open skies agreement, Korean Air’s official commented, "Gradually plans are to add other short or mid distance destinations,” adding, “We expect the government to grant a license for the budget airline unit." The Ministry of Construction and Transportation have stipulated that the international route licence will be awarded to the airline, on the proviso that the carrier will firstly operate internal domestic flights. Ministry officials released a statement saying, "The government's basic stance is that an airline should first operate domestic routes and then be allowed to operate international routes."
The maintenance and operational training is suggested to be handled by Korean Air, who commented, "This outsourcing will ensure the operational safety of Air Korea, which has been indicated as a problem in some other low cost airlines."
Obelisk’s recent report regarding the positive effect of budget airlines in emerging property markets, clearly shows that property prices increase after the introduction of low cost travel.
Kevin Prior, Investment Director at Obelisk comments, ‘We keep a close eye on the airline operators and the new routes on offer as it can indicate where the new property hot spots are going to emerge, and in general, these markets are up and coming and provide a strong ROI. The fierce competition and price wars between the airlines can ultimately equate to higher rental prices as the consumer saves on travel costs.’
For more information on property investment, and to find out about Obelisk’s latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE)
Email info@obeliskinternational.com
Visit our website: http://www.obeliskinternational.com/
Press Office: Tel. 0808 160 1005 or email press@obeliskinternational.com
To see the original article, please click here.
http://www.koreatimes.co.kr/www/news/nation/2007/11/123_14375.html
Following the recent news of Asia Air’s low cost airline expansion in partnership with Sir Richard Branson, Korean Air Co. will now join the growing competition for budget fares within Asia.
The predominant focus for the South Korean carrier is to entice more tourists to the country by offering short haul flights to the Shandong and Hanna provinces in China, Japan, Malaysia, and Thailand. Provisionally named ‘Air Korea’, the airline will have an initial cash capital of $21.5 million from its parent company, for the funding of three Airbus 300’s and two Boeing 737’s.
In taking advantage of the open skies agreement, Korean Air’s official commented, "Gradually plans are to add other short or mid distance destinations,” adding, “We expect the government to grant a license for the budget airline unit." The Ministry of Construction and Transportation have stipulated that the international route licence will be awarded to the airline, on the proviso that the carrier will firstly operate internal domestic flights. Ministry officials released a statement saying, "The government's basic stance is that an airline should first operate domestic routes and then be allowed to operate international routes."
The maintenance and operational training is suggested to be handled by Korean Air, who commented, "This outsourcing will ensure the operational safety of Air Korea, which has been indicated as a problem in some other low cost airlines."
Obelisk’s recent report regarding the positive effect of budget airlines in emerging property markets, clearly shows that property prices increase after the introduction of low cost travel.
Kevin Prior, Investment Director at Obelisk comments, ‘We keep a close eye on the airline operators and the new routes on offer as it can indicate where the new property hot spots are going to emerge, and in general, these markets are up and coming and provide a strong ROI. The fierce competition and price wars between the airlines can ultimately equate to higher rental prices as the consumer saves on travel costs.’
For more information on property investment, and to find out about Obelisk’s latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE)
Email info@obeliskinternational.com
Visit our website: http://www.obeliskinternational.com/
Press Office: Tel. 0808 160 1005 or email press@obeliskinternational.com
To see the original article, please click here.
http://www.koreatimes.co.kr/www/news/nation/2007/11/123_14375.html
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