President Kim Soo-cheon of Asiana Airlines. 

Asiana Airlines will set up a second low cost carrier this year that will fly out of both Incheon International Airport and Gimpo Airport. It has the tentative name Air Seoul, President Kim Soo-cheon of Asiana Airlines said recently.

The airline CEO told a reporter during the company’s New Year ceremony on Jan. 5 that the airline will push for the establishment of a low-cost air carrier this year, a plan which had been suspended due to objections by investors of Air Busan, another low-cost air carrier the airline set up to serve the Busan area. Asiana’s 45-day suspension from landing at the San Francisco airport due to a crash landing last year was another major issue. 

The event was hosted by the Korea Chamber of Commerce and Industry. 

Kim said this is the right year to set up another low-cost air carrier (LCC) and Asiana Airlines must have its second LCC to cover the air routes that are not profitable for the air carrier, including those between Incheon and cities in Japan.He brushed aside criticism that there are too many LCCs in Korea by saying that many LCCs serve the interest of airplane passengers by providing low fares.

“We have too have many LCCs set up by such financially well-off air carriers as Asiana Airlines now to counter a number of global LCCs entering Korea, like Air Asia,” he said. 

He also pointed out that it doesn’t cost much to set up and run LCCs. For example, Asiana Airlines invested 24 billion won in Air Busan, but now has totally recovered the investment after only three years.

The second LCC would fly domestic air routes and some short-distance international air routes, such as routes to mid-to small cities in Japan, from its home airport Gimpo Airport, Kim said.

The biggest problem that the project faces is how to go about solving the objections by investors of Air Busan, who’s stakes are split between Asiana Airlines (46 percent) and two business firms in Busan — Sewoon Steel and Dongil Holdings (54 percent). They said the second LCC’s routes may cover those served by Air Busan, which currently flies 12 air routes, including three domestic routes and nine foreign routes. Some are Gimpo-Fukuoka (Japan), Busan-Qingdao (China) and Busan-Cebu (the Philippines).

President Han Tae-keun of Air Busan, said there no longer is a problem as the investors now understand that those LCCs would not come into conflicts in the air routes. 

Established in 1988 with the management ideology “maximum safety and customer satisfaction through service,” by 2013 Asiana Airlines had developed into a truly global airline, with a fleet of over 83 Aircraft. 

“Our level of service is unsurpassed, Asiana Airlines approaches customer service without compromise,” they said. “We pursue safety as our highest priority.” 

In 2012, Asiana Airlines set its management policy as new growth and creative innovation, and surpassed its goal of customer satisfaction services and perfect, safe flight, reaching the goals of ethical/environmental/coexistence management and social contribution to fulfill our corporate social responsibility. 

“We are striving to become the world's greatest airline, making intensive efforts for sustainable growth. We hope you enjoy a fun, comfortable journey with Asiana Airlines.”