LCCs Target Medium- and Long-Distance Routes... Mixed Expectations and Concerns

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[Asia Economy Reporter Yu Je-hoon] While the aviation industry is generally experiencing a downturn, low-cost carriers (LCCs) are expanding their route networks to medium- and long-haul routes. Although this is seen as an inevitable choice in a short-haul market that has become a red ocean, there are concerns that if operational skills are not well applied, the burden could actually increase.

According to the aviation industry on the 18th, recently, domestic LCCs have been concretizing their plans to expand medium- and long-haul routes. First, T'way Air has decided to introduce the medium-sized aircraft A330-200 within the year and has officially announced plans to enter medium-haul routes such as Singapore, Australia, and Hawaii.

Air Busan, which entered Incheon Airport at the end of last year, also plans to introduce the A321neo LR within the year to target medium-haul routes such as Singapore and Delhi (India). The A321neo LR is a model with an extended range compared to the existing A321neo model.

Attempts to open new routes are also continuing. Air Seoul plans to start flights to the Quy Nhon area in Vietnam within the year. Unlike Ho Chi Minh, Da Nang, Nha Trang, Phu Quoc, and Hanoi, Quy Nhon is an area where domestic airlines have not yet operated.

The reason domestic airlines are expanding their medium-haul route networks like this is because the short-haul market has become a red ocean due to the boycott of travel to Japan caused by Korea-Japan conflicts and political instability in Hong Kong. An industry official said, "There are practically no more places to go on short-haul routes," adding, "It is a natural phenomenon to turn attention to medium-haul destinations."

However, there are concerns in the industry that as domestic airlines turn their attention to medium-haul routes indiscriminately, an oversupply phenomenon could spread. Medium-haul routes that LCCs are considering for operation are also being served by domestic full-service carriers (FSCs) as well as foreign airlines.

There is also a forecast that the burden on airlines could increase. Unlike the A320 and B737 series aircraft, which typically have about 189 to 200 seats, medium-sized aircraft such as the B777 and A330 generally have 300 to 400 seats, so there is considerable variation depending on peak and off-peak seasons. A representative from a domestic airline said, "The introduction of medium-sized aircraft and medium-haul routes clearly differ from the existing LCC business strategy of focusing on short-haul routes with small aircraft," adding, "In off-peak seasons or unexpected situations, losses could actually increase, so LCCs must also skillfully manage their operations."

This content was produced with the assistance of AI translation services.