Can South Korea’s LCCs survive a sea of red ink?

South Korea, like the rest of North Asia, has been slow to adopt the LCC model, especially when compared to its Southeast Asian neighbours, with the main impediment to expansion being conservative regulatory regimes, with protectionism still prevalent in the region. But several South Korean LCCs have established over the last three years (though some have failed). The survivors are in the process of restructuring after heavy losses in 2009, and are increasingly looking for offshore growth opportunities as part of their recovery efforts. [2822 words]

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This report contains the following subheadings:

• Four LCCs, two failures, in the South Korean market
• 5 million pax among South Korea’s LCCs in 2009
• A sea of red ink
• Asiana and Korean Air fined for anticompetitive actions against start-up LCCs
• LCCs now restructuring in various ways
• South Korean LCCs expanding internationally
• Outlook: Greater presence of LCCs in international market

This report contains the following charts and tables:

• South Korea domestic capacity growth: 2001 to 2009
• South Korea domestic capacity (seats per month), LCCs as a percentage of the total: 2001 to 2009
• Asia Pacific domestic LCC penetration by capacity (seats): 2009 
• South Korean LCCs: key details as at Mar-2010
• South Korean domestic capacity share (seats): Mar-2010
• South Korean LCCs: key details as at Mar-2010
• Jeju Air fleet details: in service and on order aircraft: as at Mar-2010
• Jeju Air fleet details: in service and on order aircraft: as at Mar-2010
• Eastar Jet destination map: Mar-2010
• South Korean LCC international expansion plans: as at Mar-2010
• South Korea international capacity (seats per month), LCCs as a percentage of the total: 2001 to 2009