Asiana Airlines to launch second LCC

Asiana obtained government approval to launch its second low-cost airline. The company, which owns a 46% stake in low-cost carrier Air Busan, got approval to launch Air Seoul from the Ministry of Land, Infrastructure, and Transportation, the ministry said Tuesday. The new airline will be based at Incheon International Airport, near the capital. A spokeswoman for Air Seoul said it will first operate on domestic routes, beginning Monday, and will branch out to international routes in October, serving China, Japan and Malaysia. Asiana is the latest major carrier to set up a low-cost subsidiary to better compete against an influx of budget airlines in international markets. Low-cost travel now accounts for more than a quarter of the region’s traffic, and Asiana CE Kim Soo-cheon has said that “a growing challenge from low-cost carriers is a stark reality facing almost all full-service airlines around the world.” Asiana’s launch of a second low cost carrier comes as it is quickly losing ground on its short-haul routes to budget carriers.<br/>