South Korea's Ministry of Land, Transport and Maritime Affairs stated it is upgrading the security alert at Incheon, Gimpo, Gimhae, Cheongju and Jeju airports to the highest level this week to ensure safety during the G-20 Seoul summit (chosun, 08-Nov-2010). The red alert, the highest on the colour-coded scale, means 50% of passengers are screened by hand and 50% of carry-on luggage is opened and searched. It is the first time the alert has been raised for the country's major airports.
South Korea declares highest security alert
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Korean LCC t'way grows Daegu base, seeking expansion outside congested Seoul, Busan and Jeju
After several years of uncertainty, the Korean LCC t'way appears to be settling in for the medium term. T'way was Korea's smallest LCC until the mid-2016 launch of Air Seoul. A few initiatives indicate t'way is planning more strategically, and for the future, suggesting greater confidence. Bulking up, diversifying and creating new growth areas could help the airline with its plan to IPO in two years.
T'way is expanding its Daegu base in southern Korea. The LCC missed the big growth out of Korea's major cities when its positioning was fragile. With Seoul and Jeju facing capacity constraints Korea's LCCs turned to Busan, but now Busan is also constrained. T'way's expansion in Daegu is 83km from Busan.
Daegu is Korea's third largest population area, potentially making it good for outbound, with inbound more of a challenge to market but not impossible. Regional Korean airports, like their Japanese peers, will increasingly try to attract foreign airlines. T'way plans to add 737-900s, which can be used to upgauge or reach further into Southeast Asia, which Korean LCCs have only partially penetrated.
Korea's Eastar Jet LCC joins U-FLY LCC alliance to strengthen position in China and Southeast Asia
Korean LCC Eastar Jet has become the fifth member of the U-FLY LCC Alliance, established in Jan-2016. Eastar Jet also becomes the first member not affiliated with the HNA Group or based in Greater China. Eastar Jet's membership comes after its larger competitor Jeju Air became a founding member of the competing LCC Value Alliance in May-2016.
For now both alliances are more like commercial partnerships, where new technology (Air Black Box, compatible with IATA's New Distribution Capability) enables the member airlines to cross-sell not just seats, but also the critical components of varied ancillary revenue. Both alliances have small costs – and thus low risk – while the U-FLY Alliance is unique in being a platform for the ever-expansive HNA Group to foster synergies among companies.
Although it is Korea's smallest major LCC, Eastar Jet has the largest LCC operation into mainland China. Eastar expects to benefit from potential cooperation through U-FLY; it will allow it to reach more inland and western Chinese points that are too far or thin for its network, but are where U-FLY's three mainland members are based.