Korean Long-haul LCC Air Premia To Launch Service in 2019

Yet another player in the competitive North Asian low-cost carrier (LCC) market, this time in South Korea, will go by the name Air Premia and start widebody service at the end of 2019. The airline completed its incorporation in July last year and has begun the process of preparing the license application with South Korea’s Ministry of Land, Infrastructure, and Transport.

Former Jeju Air president Kim Jeong Cheol will lead the airline. Kim took responsibility for reviving Jeju Air during his stint from 2009 to 2012 when he turned the debt-ridden hybrid LCC into a profit-making one.

Speaking to Korean media last week, Kim said that Air Premia aims to provide “differentiated” routes and comfortable seating at LCC prices. LCCs in Korea such as Jeju Air, Air Busan, and Jin Air now serve regional and domestic routes with narrowbody aircraft.

Air Premia plans to operate a dedicated fleet of either Boeing 787-9s or Airbus A330neos. Kim also applied the single-model strategy to Jeju Air, which flies all 737-800s.

Kim plans to use the new aircraft on medium-haul routes such as Singapore and Ho Chi Minh City and long-haul destinations such as San Francisco and Munich.

The airline will offer premium economy and standard economy classes. Kim said that premium economy would afford a service level of a full-service carrier at half the price, while prices in economy will run 80 to 90 percent lower than typical full-service fares. Plans call for premium economy to offer a seat pitch of around 42 inches, and in economy, 35 inches.

The Ministry of Land, Infrastructure, and Transport recently revised the entry requirement for an operating license, including the condition that any new airline starts with 30 billion won (US$ 27.8 million) in capital and a fleet of five aircraft or more. Kim claimed that its business plan would meet the ministry’s requirements and that the company would submit its application by July or August.