Asiana Airlines is one of South Korea's leading full-service carriers. In October 2008 and July 2016, it commenced the operation of two low-cost subsidiaries, aiming to cater to a wider range of travelers. By expanding its operations and service offerings, Asiana Airlines has provided passengers with affordable fares and increased competition in the aviation market.

Air Busan

Founded in 2007, Air Busan is South Korea’s third-largest budget airline, primarily serving destinations in South Korea and East Asia. It is a joint venture between Asiana Airlines and Busan Metropolitan City. Headquartered in Gimhae International Airport in Busan, Air Busan focuses on providing affordable air travel options for both leisure and business travelers.

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The airline operates a fleet of 21 aircraft consisting of Airbus A320s and A321s that serve 28 destinations, including China, Japan, Russia, and Thailand.

Air Seoul

Following six successful years of its first low-cost venture, Asiana Airlines considered embarking on another budget airline undertaking. However, due to financial difficulties resulting from the Asiana Airlines Flight 214 crash in 2013, the project was put on hold.

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Eventually, in 2015, the airline’s second low-cost carrier, Air Seoul, was established. Unlike Air Busan, which is a joint venture, Air Seoul is wholly owned by Asiana Airlines.

Based at South Korea’s largest international airport, Incheon International Airport in Seoul, Air Seoul connects South Korea with various destinations in Northeast Asia. The airline operates a fleet of six A321s that fly to 20 destinations, many of which are also served by Air Busan.

Strategy and market positioning

Under the umbrella of Asiana Airlines, a Star Alliance member, its low-cost subsidiaries are supported by the synergies of the full-service carrier that many budget airlines typically may not have. Leveraging Asiana Airlines' 34-year industry experience, operational expertise, and established infrastructure, both Air Busan and Air Seoul benefit from cost-sharing and joint initiatives, enhancing operational efficiency and contributing to the overall success of each airline.

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These advantages work both ways: Asiana Airlines' low-cost subsidiaries are strategically positioned to tap into the growing demand for affordable air travel in Asia, which Asiana Airlines may not cater to. These subsidiaries target budget-conscious travelers and compete with other low-cost carriers operating in the region. By offering competitive fares, these airlines aim to attract a broader customer base and expand Asiana Airlines’ market share.

While Asiana Airlines focuses on serving long-haul international routes, Air Busan and Air Seoul provide regional connections, enabling passengers to seamlessly travel to and from secondary and tertiary destinations. This expanded network improves accessibility and convenience for travelers, opening up new tourism and business opportunities.

In an evolving travel landscape, Air Busan and Air Seoul are poised to adapt and seize emerging opportunities, catering to evolving customer preferences and market dynamics. They play a significant role in expanding Asiana Airlines’ reach and diversifying its offerings. As they continue to grow and innovate, these subsidiaries contribute to the overall success and evolution of Asiana Airlines, while meeting the demands of budget-conscious travelers in Asia and beyond.