Korean Air has decided to launch operations of its new domestic subsidiary, Jin Air, on July 17.

Published: 23 Jun 2008

Korean Air has decided to launch operations of its new domestic subsidiary, Jin Air, on July 17.

The airline will start with eight flights per day (four round-trips) between Seoul Gimpo and Jeju. This number will be increased to 16 flights in October and 18 flights in December. A second route between Seoul and Busan will be launched in October with eight daily flights, which will be increased to 12 in May of next year. The third Busan-Jeju route will be inaugurated in April 2009 with eight daily flights, which will also be expanded to 12 in May.

International flights will be inaugurated post approval from the Korean government. Routes will cover open sky policy regions in China, Japan and Southeast Asia.

Jin Air's fares will be lower than the other domestic legacy carriers. Normal one-way fare between Seoul and Jeju will be 69,000 won. This is 22% lower that the current weekday fare of 88,800 won on other carriers. The airline shared that its fare system will be variously segmented according to flight departure time. "So, unlike the customary weekday/weekend division of other carriers, some of Jin Air's weekend flights could be cheaper than its more popular weekday flights."

Reservation will be 100% web-based through its web page, www.jinair.com.

The airline expects to break-even in three years. Jin Air is targeting sales of 160 billion Won in 2010, when it expects to break-even and reach profit. Expected revenue is 18 billion Won this year and 120 billion Won next year.

To meet its target amidst rising fuel prices, Jin Air will cut costs across all controllable operational fields. "It will not levy fuel surcharges recently announced by other carriers, but that may change if fuel prices continue to rise above a tolerable level," stated the airline.

Jin Air will expand its fleet as its network increases. Jin Air will operate three Boeing 737-800 aircraft by the end of this year, all equipped with 189 economy seats. The carrier will start operating two 292-seater Airbus A300-600 aircraft in March and April 2009 respectively.