ISTANBUL—South Korean hybrid carrier Air Premia is looking to grow its fleet from five to 15 Boeing 787-9s by 2027, supporting its network expansion in Asia, Europe and North America.
Seoul-based Air Premia launched with domestic and dedicated belly cargo flights during the COVID crisis in 2021. Following this “shaky pandemic start,” Air Premia began international flights in July 2022 and since has grown its fleet to five 787-9s, Strategy Planning Manager Ryan Park told Routes World delegates here in Istanbul.
Air Premia currently serves Bangkok; Barcelona, Spain; Frankfurt; Los Angeles; New York Newark; Oslo; Singapore; and Tokyo Narita. Park said Los Angeles hit an 85% load factor within two months of its October 2022 launch and, when Newark launched in May 2023, it immediately reached a 90% load factor.
The airline’s target market is small business, VFR and millennial travelers. It operates its 309-seat 787s in a two-class configuration, with 56 premium economy and 253 economy seats. This gives Air Premia a potential 13,500-km (8,390-mi.) range, putting East- and West-Coast U.S. and Western European destinations within reach.
“As of today, we are flying five aircraft and plan to introduce at least two additional aircraft every year. This means we are going fly 10 aircraft by 2025 and 15 aircraft 2027,” Park said.
However, Air Premia is struggling to source additional 787s, because the type is in high demand. “It is not easy for us to find additional aircraft. To secure the immediate aircraft in a timely way, we are still discussing with major lessors all over the world,” he said.
The two aircraft that will join the fleet in 2024 will primarily be used to add extra frequencies to Los Angeles and Newark, increasing both routes to a daily flight within the next 12 months.
“We initially concentrated on routes within Asia, before starting transpacific services to the U.S. West Coast. Moving forward, we are going to be laser-focused on expanding our own network, mainly from the U.S., or the European continent.”
Honolulu will join Air Premia’s network in December, and a network map shows potential flights to Seattle. In Asia, the map suggests routes are being considered to Hong Kong, Shenzhen and Xi'an Xianyang, all in China; Jakarta, Indonesia; Fukuoka, Kansai and Nagoya, in Japan; Manila, the Philippines; and Ho Chi Minh City, Vietnam. European possibilities include Rome Fiumicino and Paris Charles de Gaulle.
The European expansion will depend on traffic rights, and Park is hoping Air Premia will benefit from remedies from Korean Air’s acquisition of its smaller national rival, Asiana Airlines.
The UK has cleared the Korean Air-Asiana acquisition, but the European Commission (EC) raised competition concerns on some Europe-South Korea routes in May 2023. The EC said it “stopped the clock” on its antitrust investigation in June 2023, pending a request for “important information” from the merging airlines.
“To date, the parties have not yet complied with their obligation to provide the missing information, therefore the clock remains stopped in this case,” an EC spokesperson said Sept. 13.
Some commentators are now speculating that the deal may not materialize, but if it does, Virgin Atlantic will gain daily Heathrow-Seoul slots and Air Premia could stand to benefit, too. Park described this as a “huge opportunity,” because Air Premia is the only South Korean carrier that is capable of a long-haul remedy.
Park said Air Premia’s “next mission” is to widen its network and add feeder flights, particularly from Japan, southeast Asia and China. The company is “wide open” to approaches from airports or potential partner airlines.
“If everything goes according to plan, Air Premia expects to turn a profit by 2024 and achieve about $1 billion revenue in 2027 with 15 aircraft,” he said.
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