Competition on the 'Incheon~Bali Route'... LCCs Strengthen Southeast Asia Routes

Korean Air Monopoly in Bali Challenged by Jeju and Air Busan
New Routes Added and Existing Flights Increased
Record Cold Wave Expected to Boost Demand... 'Chicken Game' Also Anticipated

[Image source=Yonhap News]

Korean Air, which had a monopoly on the Indonesia Bali route, will see low-cost carriers (LCCs) consecutively start operations from this month. Along with this, routes to the Philippines and Taichung, Taiwan are also expanding. There is a strong focus on strengthening Southeast Asian routes to attract winter tourists.

According to the industry on the 15th, Jeju Air will operate the Incheon-Bali route seven times a week starting from the 27th. Although it did not secure traffic rights, it was able to start service by signing a codeshare agreement with Indonesia's Lion Air. This method involves leasing seats from another airline and selling them under its own name, sharing revenue and profits with Lion Air. Air Busan, which secured traffic rights, will also operate the Gimhae-Bali route four times a week (Monday, Wednesday, Friday, Sunday) starting from the 27th.

The Bali route, considered a popular vacation destination, had been operated solely by Korean Air since 2016. However, competition began this year as the Ministry of Land, Infrastructure and Transport signed a traffic rights agreement with Indonesia and pushed for route expansion.

The timing of Jeju Air and Air Busan's Bali route launches coincides with the start of the winter schedule (October 27, 2024 ? March 29, 2025). With a cold wave forecast this winter, there is a trend to strengthen Southeast Asian routes, which have been a growth foundation for LCCs.

Jin Air will resume the Incheon-Philippines Clark and Incheon-Laos Vientiane routes seven times a week starting from the 27th. From December 12, the Vietnam Nha Trang route will increase to twice daily. On December 19, it plans to start operating the Taiwan Taichung route seven times a week. Eastar Jet will start the Busan-Okinawa and Chiang Mai routes in December, and Air Premia will begin operating the Incheon-Hong Kong and Da Nang routes from January next year.

An aviation industry official explained, "This winter is expected to be very cold, so demand for the warm Southeast Asian region is expected to increase."