Incheon, Tiger Airways postpone budget carrier launch
South Korea's Incheon city has postponed the launch of a joint-venture budget carrier with Singapore's Tiger Airways in the face of fierce opposition from domestic low-cost airlines.
By Agencies |
SEOUL: South Korea's Incheon city has postponed the launch of a joint-venture budget carrier with Singapore's Tiger Airways in the face of fierce opposition from domestic low-cost airlines, a report said.
"We've decided to put off the application for a licence indefinitely," Baik Eun-Gi, director general of the city's port, airport and logistics bureau, was quoted as saying by a news agency late on Monday.
"Because of widespread negative opinions about the project, we need more time for persuasion and publicity," Baik said, stressing this did not mean the plan to set up Incheon-Tiger Airways has been abandoned.
The Korea Times carried a similar report on Tuesday.
Incheon city, west of Seoul and the site of the country's main international airport, originally planned to apply for a licence in September and launch the joint venture by the end of this year.
The city and its affiliates own 51 percent of Incheon-Tiger Airways while Tiger is the single largest shareholder with 49 per cent.
The project has sparked strong protests from four budget domestic carriers, Jeju Air, Jin Air, Yeongnam Air and Air Busan.
They filed a joint petition with the transport ministry, claiming the venture will be effectively controlled by Tiger since the city lacks airline experience, and so would be illegal.
Domestic aviation law bans Korean airlines which are more than 50 per cent foreign-controlled.
"Under the mask of a Korean carrier, Tiger is attempting to get a free ride," the four airlines said.
They claimed that Tiger can expect financial support from the Singapore government and thus would have an unfair advantage in competing with private carriers.
The four carriers also said Incheon should not engage in an airline business because it hosts the country's gateway airport, which is tasked with supporting private airlines.
Tiger Aviation, which runs Tiger Airways, said last year the budget airline would start with five Airbus A320 planes. It expected to fly domestic routes as well as to destinations in Japan, China, Russia and Mongolia.
"We've decided to put off the application for a licence indefinitely," Baik Eun-Gi, director general of the city's port, airport and logistics bureau, was quoted as saying by a news agency late on Monday.
"Because of widespread negative opinions about the project, we need more time for persuasion and publicity," Baik said, stressing this did not mean the plan to set up Incheon-Tiger Airways has been abandoned.
The Korea Times carried a similar report on Tuesday.
Incheon city, west of Seoul and the site of the country's main international airport, originally planned to apply for a licence in September and launch the joint venture by the end of this year.
The city and its affiliates own 51 percent of Incheon-Tiger Airways while Tiger is the single largest shareholder with 49 per cent.
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The project has sparked strong protests from four budget domestic carriers, Jeju Air, Jin Air, Yeongnam Air and Air Busan.
They filed a joint petition with the transport ministry, claiming the venture will be effectively controlled by Tiger since the city lacks airline experience, and so would be illegal.
Domestic aviation law bans Korean airlines which are more than 50 per cent foreign-controlled.
"Under the mask of a Korean carrier, Tiger is attempting to get a free ride," the four airlines said.
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They claimed that Tiger can expect financial support from the Singapore government and thus would have an unfair advantage in competing with private carriers.
The four carriers also said Incheon should not engage in an airline business because it hosts the country's gateway airport, which is tasked with supporting private airlines.
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Tiger Aviation, which runs Tiger Airways, said last year the budget airline would start with five Airbus A320 planes. It expected to fly domestic routes as well as to destinations in Japan, China, Russia and Mongolia.
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