South Korea's main aviation gateway Incheon said yesterday it planned to jump into Asia's booming budget aviation market through ties with Tiger Airways of Singapore.
The city plans to use the major international airport 40km west of Seoul as a base for low-cost international and domestic flights.
"Talks are under way with Tiger Airways on setting up a budget carrier joint venture," said Lee Sang-wook, an official at the city's maritime, airport and distribution bureau.
"It is still unclear when a deal will be done," he said.
Tiger Airways, established in 2004, flies to more than 25 destinations in eight Asia-Pacific countries. Tiger Aviation Group is 49-percent owned by Singapore Airlines.
The Korea Times reported that Incheon would apply to launch a carrier by 2010 after signing a memorandum of understanding with Tiger Airways this month.
With 20 billion won (US$22 million) in capital, the joint venture will be owned 49 percent by Tiger Airways and 51 percent by the city, it said.
Incheon plans to operate domestic routes for about a year and then start flights to Japan and China with five Airbus A320s or Boeing 737s, it said.
The city has yet to win approval from the Ministry of Construction and Transportation, which places tight restrictions on the airline industry.
The ministry has introduced a safety-watch list of carriers with a high risk of accidents.
It plans new regulations that would require airlines to operate domestic routes for at least three years without major accidents before launching international operations.
Incheon officials insisted the government should allow free competition in the budget aviation market, citing "aggressive marketing" by Asian rivals.
Chinese and Southeast Asian low-budget carriers are selling tickets 50 percent cheaper than Korean Air on routes to China, they said.
"The global budget carrier market is growing rapidly. Restrictions will only allow foreign rivals to expand their market share in this region," a city official said on condition of anonymity.
"We are ready to fully meet international standards through thorough preparations," the official said.
Discount carriers now make up 20 percent of the US and European air travel market and are expanding quickly in China and Southeast Asia.
South Korea has two low-budget domestic carriers. Top carrier Korean Air in June announced plans for a budget unit within three years.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS