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A New Trend? South Korea's Low-cost Airlines Are Entering The Long-haul Market

Jul 03, 2025 Leave a message

A new trend? South Korea's low-cost airlines are entering the long-haul market

 

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Civil Aviation Resources Network, July 2, 2025: According to the Chosun Ilbo, starting from July 15, T'way Air will become South Korea's first low-cost airline (LCC) to operate regular routes to Vancouver, Canada, with a flight time of about 10 hours. Another low-cost airline, Fly Gangwon, which recently changed its name to Parata Air, is preparing to resume operations in the second half of the year. It plans to open North American routes such as Los Angeles as early as next year. Currently, Gangwon Airlines has leased an Airbus A330 aircraft that can fly trans-Pacific routes, highlighting its intention to enter the long-haul market.

 

Other LCCs in South Korea have also turned to the long-haul market. Air Premia plans to open a route to Honolulu, Hawaii later this month, while Busan Air has started operating routes to Bali in October last year.

 

After years of intensive cultivation of short-haul routes, South Korea's low-cost airlines are planning to open longer routes with the introduction of large passenger aircraft and accumulated years of operating experience, expanding into the medium and long-haul market that has always been dominated by full-service airlines (FSC). For passengers, this shift means that they can travel to destinations such as Europe and the United States at a more affordable price and enjoy more choices brought about by the intensified competition between FSC and LCC. First-time travelers, newlyweds and budget-conscious young travelers who are looking for cost-effectiveness are driving the growth of demand for long-haul travel by low-cost airlines.

Previously, South Korean low-cost airlines mainly operated domestic routes and short-haul international routes with a flight time of 3-4 hours to Japan, Southeast Asia and China. In the aviation industry, routes within 4 hours are short-haul, 4-8 hours are medium-haul, and more than 8 hours are long-haul routes. Destinations such as Japan and Hong Kong, China are short-haul, Central Asia and Singapore are medium-haul, and Europe and the United States are long-haul markets.

 

This is not the first time that South Korean low-cost airlines have entered the long-haul market. In December 2022, T'way Air opened the Incheon-Sydney route. Last year, it opened new European routes with a flight time of 10-13 hours to Zagreb, Croatia and Rome, Italy.

The core motivation for the transformation of medium and long-distance routes is profitability. Traditional short-haul markets such as China and Japan have become saturated and are caught in price wars, making it increasingly difficult for airlines to make money. Long-distance routes have higher base fares and greater revenue potential. Especially North American routes, there is a stable demand for Korean expatriates, which provides airlines with a more predictable and stable source of income.

 

The merger process of Korean Air and Asiana Airlines has created opportunities for the expansion of low-cost airlines. In order to alleviate monopoly concerns, some of the flight rights and airport take-off and landing times previously held by the two airlines have been reallocated, allowing airlines such as Premier Airlines and T'way Airlines, which operate medium and large aircraft, to open new medium and long-distance routes to Europe and the United States.

 

Passengers have responded enthusiastically to the newly added affordable long-distance routes to Europe and the United States. As of July 1, T'way Air's fare for round-trip flights from South Korea to Paris from August 1 to 9 was 1.61 million won (about 1,170 U.S. dollars), about 660,000 won (480 U.S. dollars) cheaper than Asiana Airlines' 2.27 million won (about 1,650 U.S. dollars).

 

But low-cost airlines still face challenges in improving service quality to improve passenger perception. Although airfares may be lower, many LCCs offer minimal in-flight services. In addition to bottled water, beverages, blankets, slippers, toothbrushes and other items are usually paid for. In-flight entertainment services commonly provided by FSCs (such as movies, music and games provided through seat displays) are often not provided by LCCs, which usually encourage passengers to use personal devices.

 

As LCCs now also enter long-haul routes, industry observers warn that simple in-flight services may lead to a poor passenger experience, which will ultimately weaken the appeal of low-cost long-haul travel.

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