JEJU, South Korea: Kim Bo-Min, a Starbucks barista, paid 140,000 won for a round-trip from her hometown of Daegu to the popular resort island of Jeju, arriving on T'Way Air, part of South Korea's rapidly growing low-cost airline sector.
Jeju Air is South Korea's No.3 airline by revenue, operating 6 local and 66 international routes with 42 Boeing 737-700 jets. In November, it placed a US$4.4 billion order for 50 737 MAX jets. Jeju International Airport is pictured in Jeju on Jeju Island, South Korea May 30, 2019. REUTERS/Yang Hee-kyongIn broader North Asia, LCCs have been slower to take off than in other parts of the world, due partly to slow-moving Chinese policies, a domestic aviation duopoly in Japan and Cathay Pacific's dominance of the Hong Kong market.
The 53 per cent domestic market share of carriers like Jeju and Jin Air outstrips the 9 per cent LCC penetration in Japan and 13 per cent in China, data from CAPA Centre for Aviation shows. Korean Air's operating profit fell over 40 per cent to 640 billion won in 2018 from 1.1 trillion won in 2016, while Jeju Air's operating profit nearly doubled to 100 billion won over the period.
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