Low-cost carrier Parata Airlines plans to establish a hub at Yangyang International Airport and create routes from Yangyang. Having acquired FlyGangwon, which was a regional airline in Gangwon Province, the company aims to contribute to local economic growth and revitalize the tourism industry based on the Yangyang region. However, the low passenger demand poses a challenge that needs to be addressed.
According to the aviation industry on the 17th, Parata Airlines is undergoing a review of a change permit from the Ministry of Land, Infrastructure and Transport. The change permit is a process that must be completed before obtaining the Air Operator Certificate (AOC). It is reported that Parata Airlines submitted a business plan to the ministry at the end of last year, indicating that it would operate the Yangyang-Jeju route with Yangyang Airport as its hub.
Parata Airlines expects to receive approval for the change permit from the Ministry of Land, Infrastructure and Transport as early as next month. After receiving the change permit, the next step is to acquire the AOC. The ministry carefully examines over 3,000 items, including aircraft safety management organization, operational and maintenance regulations, and internal safety management systems, before issuing the AOC. Generally, it takes more than six months from the AOC application to issuance, making it possible to operate the Yangyang-Jeju route as early as the end of the year.
Some experts predict that it may take longer for Parata Airlines to obtain the AOC. This is due to concerns that too many low-cost carriers (LCCs) in South Korea could lead to poor maintenance amid intense price competition, especially after the tragic accident involving a Jeju Air passenger aircraft at Muan International Airport. Currently, there are nine national LCCs, which is comparable to the United States, where the aviation industry is significantly larger and has the same number. There are also concerns that the shorter runway length at Yangyang Airport (2,500 meters) compared to Muan Airport (2,800 meters) may make it difficult to secure permits based on safety regulations.
The local community expects that having an airline establish a hub at a regional airport will create job opportunities. Parata Airlines plans to focus on developing new routes with Yangyang Airport as its hub, regardless of the three-year maintenance obligation for a base airport. New airlines must include in their business plan submitted to the ministry a commitment to maintain an airport facility for at least three years during the licensing review. After three years of operation, they are no longer required to maintain a base airport; however, Parata Airlines has already met this condition during the time of its predecessor, FlyGangwon.
However, the issue of insufficient passenger demand is a problem that Parata Airlines must address. Yangyang Airport has struggled with profitability, leading other airlines to frequently start and suspend operations there. In the past, amid a significant drop in air travel demand due to COVID-19, Gangwon Province provided over 14.5 billion won to FlyGangwon, but the airline ultimately could not survive.
Experts emphasize the importance of creating attractions for foreign tourists. Lee Hwi-young, a professor in the Department of Aviation Management at Inha Technical College, noted, “It is important to attract Chinese and Japanese tourists through Yangyang Airport. There needs to be infrastructure for tourists to enjoy in the Gangwon region. To revitalize regional tourism, we should consider developing large-scale leisure towns and casinos.”