Korea’s Jeju Air signals it must change from hybrid to pure LCC model as it seeks partnerships

Change may finally be coming to South Korea's low-cost carrier scene. Once the home of innovation and the only notable examples of LCCs in North Asia, the numerous LCCs stagnated under a "Korea-style" LCC model that reduced some costs, making them lower-cost than the full-service legacy incumbents, but far from being internationally competitive. There were bouts of unprofitability and plenty of unexploited opportunities for expansion.

Independent Jeju Air, Korea's third-oldest carrier (now eight years old) and first LCC, is more acutely aware than its mainline subsidiary LCCs of the changing dynamics in North Asia and is looking to respond.

Japanese low-cost carriers as well as those from Southeast Asia have a growing presence in Korea, and the Korean market is increasingly warming to them. With a new CEO, Jeju Air is looking to move away from its hybrid model to further reduce costs, and is also open to partnerships and alliances. If Jeju is able to achieve these goals, Korea's other LCCs will be pressed to respond - creating a very dynamic North Asia LCC scene.