Budget airlines' launch of Bali routes could cut ticket prices

South Korean low-cost carriers (LCCs), such as Jeju Air Co. and Air Busan Co., are set to challenge Korean Air Lines Co.'s dominance over the Bali, Indonesia route, a market that the Korean flagship carrier has until now dominated operationally among Korean airlines. This shift to a more competitive landscape is expected to reduce ticket prices from more than 1m won ($736.86) round trip to less than half that amount. According to sources from the aviation industry on Monday, Jeju Air will be the first Korean LCC to launch a new Incheon-Bali route, offering seven flights per week starting on October 27th, 2024. The airline will offer a limited-time promotional fare of 99,300 won for a one-way ticket (including fuel surcharge and airport tax) until October 31st. Air Busan will also begin operating a new route from Busan (Gimhae Airport) to Bali, with four flights per week starting on October 30th. To celebrate its inaugural flight, the airline will offer one-way tickets at a special price of 249,000 won until October 17th. Korean Air and Garuda Indonesia were the only two carriers to operate the Incheon-Bali route. With Korean Air effectively monopolizing the route, ticket prices have been considered high relative to the flight time of around 7 hours, with one-way fares typically ranging from 500,000 won to 800,000 won. With LCCs entering the market, Korean Air is also preparing to respond proactively.<br/>