SEOUL- Flag carrier Korean Air (KE) has signed an interline agreement with Air Premia (YP), a long-haul budget airline to facilitate connections between Air Premia’s U.S. flights and Korean Air’s flights to other countries in East Asia.
On Monday (May 27, 2024), Air Premia announced the agreement, which will allow them to sell tickets that link their US flights with Korean Air’s flights to East and Southeast Asian destinations.
Korean Air and Air Premia Signs Interline
An interline agreement simplifies travel by allowing passengers to transfer between flights without retrieving their luggage or checking in multiple times, reported, koreajoongangdaily.
For example, passengers flying with Air Premia from New York can transfer at Incheon International Airport (ICN), Seoul to Korean Air flights to cities in Japan, China, and Bangkok.
Similarly, those departing from Los Angeles can transfer to flights heading to Bangkok, Ho Chi Minh, Manila, and Singapore. Additionally, Air Premia flights from San Francisco, which began operations on May 17, will connect to Singapore.
This marks the first time Korean Air has signed an interline agreement with a domestic airline, and it’s also Air Premia’s debut in securing transit routes to Japan and Southeast Asian countries.
Strategic Move Ahead of Merger
Aviation industry insiders view this agreement as a strategic move by Korean Air to address competition concerns raised by the U.S. Department of Justice (DOJ) regarding its proposed merger with Asiana Airlines (OZ).
Air Premia currently operates flights from Incheon International Airport to major U.S. destinations including New York, Los Angeles, Honolulu, and San Francisco. These routes are crucial for the budget carrier’s expansion and are also significant for Korean Air’s merger with Asiana Airlines.
Long-haul flights, which generate the most revenue for airlines, are a focal point of concern for the U.S. DOJ regarding potential monopoly issues.
Additionally, Korean Air plans to lease four Boeing 787-9 Dreamliners to Air Premia—two in 2024 and two at a later date—to further address competition concerns. Air Premia currently operates five Dreamliners.
Air Premia is also finalizing an interline agreement with Alaska Airlines (AS), which will enable connecting flights for 110 routes in the United States and six routes to South and Central America, including Mexico and Costa Rica, according to a news release on Monday.
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