Ministry of Land grants international route license

Ticket sales to begin in Q4, LA service set for next year

Three-way race expected for Asiana's vacated US routes

[Provided by Parata Air]
[Provided by Parata Air]

Parata Air has secured route sales approval from the South Korean government, following earlier clearance from US authorities, and plans to begin selling tickets for its US routes as early as the fourth quarter. The development comes as the launch of the merged Korean Air has left a growing gap in Asiana Airlines' US network, setting off an intensifying competition among carriers to capture that demand.

Parata Air recently obtained an international route license from the Ministry of Land, Infrastructure and Transport for its US service, industry sources said Friday. The approval follows earlier clearance from the US Department of Transportation authorizing the carrier to operate as a foreign airline, and together the two permits allow Parata Air to begin selling tickets on the Incheon–Los Angeles route.

The airline plans to launch ticket sales as early as the fourth quarter and will announce an expanded sales schedule and a specific launch date after completing remaining licensing steps. Before actual flights can begin, Parata Air must still clear additional hurdles, including a security review by the US Transportation Security Administration and an FAA Part 129 operating approval from the Federal Aviation Administration.

An aircraft arrives at Los Angeles International Airport in Los Angeles, California. [Reuters]
An aircraft arrives at Los Angeles International Airport in Los Angeles, California. [Reuters]

US routes have become a focal point in the industry since the launch of the merged Korean Air, with carriers vying to fill the capacity Asiana Airlines is vacating. The routes attract both business and leisure travelers, and low-cost carriers can also tap connecting demand by linking their existing short- and medium-haul networks to transpacific services.

Passenger numbers on the routes have been rising steadily. About 2.96 million passengers used Incheon Airport's US routes in the first half of this year, up 12 percent from the same period last year, according to the Ministry of Land, Infrastructure and Transport's aviation information portal — a gain achieved despite high fuel prices and a weak won.

Among South Korean carriers, Korean Air, Asiana Airlines and Air Premia currently operate US routes. If Parata Air launches service, the market would again have three domestic carriers competing on those routes. Air Premia has already moved aggressively to stake out territory, expanding its US network to include Los Angeles, New York, San Francisco, Honolulu and Washington, D.C., while Parata Air is preparing to enter with its Los Angeles service.

An Air Premia aircraft. [Provided by Air Premia]
An Air Premia aircraft. [Provided by Air Premia]

Given the demands of long-haul flying, analysts expect the competitiveness of low-cost carriers on these routes to hinge on their operational capabilities and service quality.

Parata Air is building its fleet around the A330-200 and is pursuing low-earth-orbit satellite-based high-speed Wi-Fi, with plans to offer the service free to business smart class customers. The carrier also intends to build a connecting network linking its existing Japan and Vietnam routes with its planned US service.

The two carriers' cabin strategies differ markedly. Air Premia has positioned itself around a "hybrid" concept centered on premium economy, differentiating without a business class, while Parata Air has configured its A330-200 with a full traditional business class cabin.

"With the Ministry of Land's route license now in hand, Parata Air's groundwork for launching US service appears to have advanced a meaningful step," an industry official said. "The timing of the remaining steps — TSA security approval and FAA Part 129 operating clearance — will ultimately determine when the airline can actually begin flying."


eyre@heraldcorp.com