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Korean Air Co said yesterday it would launch a new budget airline within three years to serve domestic and shorter international routes.

 

South Korea's largest airline said in a statement that it has been pondering a low-cost carrier since 2005 and that it could be set up using one of its affiliates, Korea Airport Service, rather than through creating an entirely new company.

 

The move aims to "proactively deal with changes in the airline industry," Kim Young-ho, president of Korean Air's passenger division, said in the statement.

 

For example, the airline noted South Korea's high-speed railway network is expanding and would take some of the demand for domestic flights.

 

"It is Korean Air's conclusion that it must develop new markets and business models to effectively utilize the fleet that will be freed from domestic operations," the company said in the statement.

 

Korean Air is the world's leading commercial air cargo firm.

 

(Shanghai Daily June 6, 2007)