Jin Air: A Premium Low-Cost Carrier
K. Ravi Kumar
Marshall School of Business, University of Southern California, USA
Shabbir Ghadiali
Sasin GIBA of Chulalongkorn University, Thailand
Volume 3: 2009, pp. 75-96; ABSTRACT
The North and South East Asia air passenger market had started to boom with the increase in per capita income and the fact that one-fourth of the world lives in China, Japan and Korea. Korean Air saw the opportunity for a low-cost regional airline to operate safely and launched Jin Air as an independent subsidiary but with a lot of resources shared with the parent company. Starting in June 2008, Jin Air had expanded domestically but was still not meeting the load factors that they had targeted. This case sets the stage for operations analysis as new opportunities to expand to foreign locations were emerging, along with increases in investments, cost structures and competition.
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