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Jin Air expanding and receiving greater recognition from parent Korean Air. Maybe Australia next

Analysis

The success of independent Jeju Air, which went public in 2015 and for a time had a higher market capitalisation than AirAsia, galvanised Jin Air into higher growth so the Korean Air subsidiary would become Korea's largest LCC. Overall Jeju Air remains larger, but Jin Air is catching up, establishing itself firmly as second-largest and narrowing the gap with Jeju Air.

Jin Air SVP/Director of Marketing Emily Cho told CAPA's LCCs in North Asia Summit (6/7-Jun-2016) at Tokyo Narita that Jin Air will grow to a fleet of 22 aircraft in Jul-2016. Jin Air is finally entering the trunk route between Seoul and Tokyo as other LCCs grow and enter the market. If Jin Air is to be Korea's leading LCC, it will need to take the initiative in more markets. Jin Air is Korea's - and Northeast Asia's - only widebody LCC operator. Its first long haul route, to Honolulu, has stimulated previously flat Korean visitor numbers to Hawaii. Jin Air has increased codeshares with Korean Air and established interlines, including with the Jetstar Group, which could hint at a future long-haul service from Seoul to Australia, where non-stop Korea-Australia capacity is down but visitor numbers are up due to stronger sixth freedom traffic.

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