Ministry of Land, Infrastructure and Transport Approves Cargo Transport in LCC Passenger Aircraft Cabins

[Asia Economy Reporter Yoo In-ho] The Ministry of Land, Infrastructure and Transport announced on the 20th that it has issued flight approvals after safety reviews for three low-cost carriers (LCCs)?T'way Air, Jeju Air, and Jin Air?that recently submitted plans for cargo transportation using passenger aircraft.

Following major airlines Korean Air and Asiana Airlines, a total of five air transport operators, including LCCs, now have opportunities to create new air demand.

Due to the impact of the novel coronavirus disease (COVID-19), air passenger traffic plummeted by about 66%, causing 187 out of 363 domestic passenger aircraft?half of the fleet?to be grounded. The Ministry of Land, Infrastructure and Transport’s move to open new revenue opportunities is interpreted as an effort to enhance the utilization of idle passenger aircraft.

When loading cargo inside the cabin, an additional 4 tons (B737 model) to up to 10 tons (B777 model) can be carried compared to loading only in the existing lower cargo hold, which also helps expand transportation capacity.

The first LCC passenger aircraft cabin cargo flight will be Jin Air on the Incheon-Bangkok route, transporting about 2 tons of electronic products. Out of 393 seats on one B777 passenger aircraft, 372 seats were removed and the cabin interior was converted exclusively for cargo.

Jin Air plans to use domestically produced flame-retardant fabric to manufacture its own flame-retardant packaging containers for cargo transportation inside the cabin.

Jeju Air and T'way Air plan to load small home appliances, clothing fabrics, accessories, and other items on the overhead shelves and above the seats inside the cabin of 189-seat B737 passenger aircraft and transport them to countries such as Thailand and Vietnam.

With the approval for cargo transportation using idle passenger aircraft, it is expected that cumulative sales per airline will range from about 260 million KRW to up to 1.9 billion KRW by the end of this year, with revenue per flight ranging from 20 million KRW to a maximum of 80 million KRW.

Oh Seong-woon, head of the Aviation Operations Division at the Ministry of Land, Infrastructure and Transport, said, “Although LCCs have relatively less experience in cargo transportation, we thoroughly verified safety through multifaceted safety measures, sufficient prior preparation, and training to ensure no safety issues.” He added, “We will continue to closely monitor airlines’ safe operations and actively support the creation of new revenue sources in response to market changes to help the aviation industry, which has recently been struggling due to COVID-19.”