Air PREMIA, the first hybrid carrier focused on medium and long-haul international routes in South Korea, announces that the company has resubmitted its Air Carrier License (ACL) application to Ministry of Land Infrastructure and Transport (MOLIT) on November 2 since the government have required all proposed airlines to resubmit their applications simultaneously following the revision of Aviation Business Act that MOLIT had publicized on October 31.
Air PREMIA expects to receive ACL at least in January 2019 as the company fully satisfies all the requirements the government has announced such as sound business plan, capital size, fleet planning, safety rules, hiring schedules and more. According to the revised policy, MOLIT has 90 days to review and make a decision on the approval.
Air PREMIA secured KRW 37 billion (appx. USD 33 million) before submitting an application through anchor and series A funding rounds. After acquiring ACL, Air PREMIA is planning to raise up to KRW 65 billion via series B funding to secure KRW 100 billion before starting its revenue operation which is estimated to launch in September 2020.
Air PREMIA is the only proposed airline entirely free from the controversy that Korean Low-Cost-Carrier (LCC) market is crammed full due to the overheated competition of six current operating LCCs. Moreover, Air PREMIA encourages inbound and outbound passengers from neighboring countries such as Southeast Asian countries, China, and Japan to use Korean LCCs since Air PREMIA connects long-haul trunk routes including destinations in the west coast of North America, Europe and Oceania directly from Incheon airport.
Air PREMIA has a unique business model claiming themselves as a Hybrid-Service-Carrier providing customer-focused service, spacious legroom, free snacks, and delightful in-flight entertainment options at a lower price than Full-Service-Carriers (FSC) in Korea. Air PREMIA follows LCC operation model – single fleet and seat configuration, point-to-point routes system – but offers low-density seat configuration and premium service to attract more customers.
This industry-disrupting airline offers two-class configurations; Premium Economy (PE) class brings 42 inches pitch with business class level services such as priority check-in, boarding, and baggage handling; Economy seat pitch will be 35 inches, the widest economy seats in the class. The ticket price of economy seats of Air PREMIA is set to 80 ~ 90% of FSC’s economy class, and PE ticket price will be set to 140% of FSC’s economy class which is 50% of the price of FSC’s business class.
Most of the routes are strategically comprised of more than six hours flights and targeted primarily to high-demand destinations where yet undeveloped by two incumbents in Korea. Air PREMIA follows a single fleet configuration strategy introducing the latest model of wide-body aircraft with 300 seats, such as Boeing 787-9 or Airbus A330 Neo.