Budget airlines turn to cargo shipping, long-haul flights for breakthrough

The nation’s low-cost carriers facing financial difficulties caused by the prolonged COVID-19 pandemic are bringing in cargo planes and planes for long-haul flights to diversify their source of revenue.

T’way Air, for instance, will introduce on Thursday Airbus A330-300 planes that can cover long-haul distances for more than 300 passengers.

The plane will begin to operate within the country in March and then be used for longer routes to Singapore, Australia, Croatia, and Kyrgyzstan.

“We will be the first low-cost carrier to implement business class seats with premium flatbeds that can offer a comfortable and spacious traveling experience to passengers,” said an official from T’way Air.

South Korea’s biggest low-cost carrier, Jeju Air, will be the first to operate a cargo plane among local budget airlines.

The 737-800 Boeing Converted Freighter, the same model as the company’s passenger jets, will be used for transporting cargo.

Another budget carrier, Air Premia, has been benefiting from its cargo business that recorded 281 metric tons of shipments last month.

Air Premia began its international cargo transportation last December with its planes flying from Incheon to Singapore.

Last month, it also began operating cargo flight routes between Incheon and Ho Chi Minh City.

“We have successfully stabilized our cargo transportation business as we are not only transporting a lot of goods but those goods are high-value products such as semiconductors, ship parts, and luxury brands’ duty-free items,” said an official from Air Premia.

Air Premia will also be operating long-distance flights to Los Angeles starting this May with the Boeing 787-9 that can fly more than 15,000 km one way.

Such efforts by budget carriers are in response to plunging travel demand as international travels have basically halted during the pandemic.

“From the companies’ point of view, these are desperate measures to find a breakthrough, but this means that it will also endure errors caused by entering the logistics industry. It would take around three to four years to say these businesses were successful or not,” said professor Hwang Yong-sik from the division of business administration at Sejong University.

By Hong Yoo (yoohong@heraldcorp.com)