Korean Air to Start Low-Cost Airline Service

Seoul-based Korean Air has said that it would launch budget airline Air Korea in 2008 with five planes – three Airbus 300 and two Boeing 737 – to countries including China, Japan, Thailand and Malaysia, by investing $21.5 million.

However, the maintenance and operation training would be conducted by Korean Air itself. The company said: “This outsourcing will ensure the operational safety of Air Korea, which has been indicated as a problem in some other low cost airlines.”