Busan is emerging as a battleground for domestic and foreign airlines. As the number of tourists visiting Busan grows, airlines are racing to expand routes to the city. Busan routes currently face less cutthroat competition than routes to the Seoul metropolitan area, offering the advantage of higher profitability. But some warn that if foreign carriers keep piling in, Busan routes could also reach a supply saturation point.
According to the airline industry on the 2nd, Starlux Airlines, a major Taiwanese carrier, will increase Sunday flights on the Busan–Taipei, Taiwan route from two to three from Sept. 6 to 20. As a result, the route will shuttle between the two cities 16 times a week. Saturday flights on the Busan–Taichung route will also be expanded from one to two starting Oct. 3.
There is another airline doubling down on Busan routes. Emirates, the largest carrier in the Middle East, recently set up a general sales agent office in Busan to handle ticket sales and marketing. Emirates plans to launch a regular Busan–Dubai, United Arab Emirates (UAE) service. It was initially set to begin in August, but due to the situation in the Middle East it has been briefly postponed, and the carrier is seeking an appropriate time within the year.
Domestic airlines are also expanding Busan departure and arrival routes. Low-cost carrier (LCC) Jeju Air is working to add flights on the Busan–Shanghai, China route starting with the winter schedule that begins Oct. 25.
AIR BUSAN also plans to launch and relaunch, respectively, the Busan–Guangzhou, China route and the Busan–Chiang Mai, Thailand route starting the same day. Eastar Jet Co. will add 58 Busan–Fukuoka flights and 56 Busan–Taipei flights from next month through October.
◇ Boost from the "Busan fever" leads to more flights… "Profitability is high for now, but at this rate supply will be excessive"
This trend stems from a sharp rise in recent demand for travel to Busan. According to the Ministry of Land, Infrastructure and Transport's aviation information portal system, international arrivals and departures at Gimhae International Airport in the first half of this year totaled 6,071,022, up 23.2% from the same period a year earlier (4,927,945). That far outpaces growth at Incheon International Airport (38,386,794, up 6.3%) and Gimpo International Airport (2,532,545, up 18.9%).
A travel industry official said, "Travel to Busan is so popular among Asian travelers, including those from the Chinese-speaking world such as Taiwan and from Japan, that the term 'Busan fever' is trending," adding, "Being by the sea, the city has a more relaxed vibe than Seoul, prices are relatively affordable, and it is close to Taiwan and Japan, so we expect tourism demand to keep growing for a while."
From the airline industry's perspective, expanding Busan-origin routes is positive for profitability. An LCC industry official said, "On routes to the Seoul metropolitan area, such as Incheon, supply is overflowing and cutthroat competition has reached a peak," adding, "By contrast, Busan routes have demand behind them and face less competition than Seoul-area routes, making it relatively easier to get the proper price." For destinations such as Taiwan and Japan, the flight distance is shorter than from Seoul, which reduces burdens such as fuel costs and other expenses, another factor that lifts profitability.
However, competition is a concern as foreign carriers join domestic airlines on Busan routes. International seat capacity at Gimhae Airport rose 20% from 5,799,958 in the first half of last year to 6,957,228 in the first half of this year. An LCC industry official said, "Competition is intensifying as foreign carriers enter," adding, "At this rate, cutthroat competition will deepen on Busan routes as well."