[Column] LCCs That Can't Reduce Aircraft Utilization Rates

On the 23rd, the 'LCC Emergency Safety Inspection Meeting' was held under the chairmanship of Park Sang-woo, Minister of Land, Infrastructure and Transport. Representatives of all domestic low-cost carriers (LCCs) attended the meeting.

At the meeting, the utilization rate became a key topic. The Ministry of Land, Infrastructure and Transport ordered the nine domestic LCCs to lower their utilization rates to secure sufficient maintenance time and prepare self-help measures. A ministry official said, "Jeju Air's utilization rate reduction ratio (9%) is the highest, and some other LCCs mentioned 'maintaining the current level.' Since utilization rate is directly linked to revenue, those with relatively fewer aircraft or flights expressed difficulty in lowering it further." Right after the meeting, one LCC representative showed signs of concern, saying, "It is difficult to specify the utilization rate reduction ratio in exact numbers."

On the morning of the 31st, at Busan Gimhae International Airport, the joint investigation team, including the Ministry of Land, Infrastructure and Transport's Aviation and Railway Accident Investigation Board and the French Bureau d'Enqu?tes et d'Analyses (BEA), conducted a safety inspection ahead of the joint examination of the Air Busan aircraft fire. Photo by Yonhap News

Within a month, two LCC aircraft caught fire. Although the causes and damage scales differ, passengers' anxiety has grown more than ever. The demand that was attracted by the so-called 'cheap price' is also turning away.

After the accidents, excessive operations by LCCs, that is, excessively high aircraft utilization rates, came under media scrutiny. This rate is calculated by dividing the total operating hours by the number of operable aircraft. It indicates the actual flight time per aircraft. While a higher figure can be interpreted as the airline operating efficiently and profitably, it also increases airframe fatigue, accelerating aging.

The Jeju Air HL8088 aircraft involved in the disaster on the 29th of last month was found to have operated 13 flights in the 48 hours before the accident. Its daily average utilization rate was 14.14 hours, higher than other airlines with the same aircraft model. The Air Busan HL7763 aircraft that caught fire three days earlier flew more during the Lunar New Year holiday. Although the exact cause of the accident needs to be examined, it operated 17 flights in the 48 hours before the accident, spending 942 minutes, or 15 hours and 42 minutes, in the air.

The Ministry of Land, Infrastructure and Transport is encouraging LCCs to finalize their self-help plans and to announce them directly through the Korea Air Transport Association in early February. This approach aims to clarify responsibility for the implementation of these measures and to pressure airlines to present stronger countermeasures.

The current LCCs are receiving evaluations similar to those in their early business days. The perception is that because airfares are cheap, safety might be compromised. It is no longer acceptable to dismiss aircraft accidents as statistically less frequent or fatal compared to road traffic accidents or to attribute them to 'bad luck.'

A wave of integration is blowing through the LCC market following the merger of Korean Air and Asiana Airlines. Expectations are growing that this will create synergies in safety, service, and other aspects. After the market restructuring is complete, there should be changes that LCC passengers can tangibly experience.