Korean Air may launch low cost carrier

Korean Air Co. is to launch a new low cost carrier within two to three years to compete against the growing legion of budget airlines in the North Asia region.The low-cost carrier will use Boeing 737s to fly domestic routes and short- and mid-haul international routes between South Korea and China, and Japan and the Philippines

The carrier is considering using Hanjin Group affiliate Korea Airport Service for the new airline rather than setting up a new company.

“We have been pushing to establish a budget airline to cope with changes in the global air market, including a rise in the number of budget carriers,” Kim Young-ho, Korean Air’s president for passenger service told Yonhap news agency.