Asiana Airlines Inc., South Korea's No. 2 flag carrier, has been granted the green light to operate its second low budget carrier, a government decision feared to intensify competition in the already heated no-frills flight market, officials said Monday.
The transportation ministry said that it has issued a business license to Air Seoul, the second low cost carrier owned by Asiana Airlines. It already runs Air Busan based in the southeast port city of Busan.
The ministry cited a steady growth in air traffic as a reason for issuing the license to Air Seoul, adding that its business plans also met related standards.
Asiana Airlines was supposed to submit its application for the business in May, but it was delayed until October due in part to an accident in Hiroshima and the MERS outbreak.
Asiana Airlines will provide flights to and from China, Japan and Southeast Asian countries through the new low cost carrier.
South Korea now has six low cost carriers that include market leader Jeju Air Co. and Jin Air Co., which is owned by leading flag carrier Korean Air Lines Co.
Rival companies have been expressing opposition to the launch of additional carriers, warning that it could intensify competition in the "oversaturated" market. (Yonhap)
