Air Busan Co., Ltd. Fukuoka/Osaka Branch

Success Stories - Service / Others Air Busan Co., Ltd. Fukuoka/Osaka Branch Air Busan, a fast-growing Korean budget airline company that prides itself on providing low airfares and differentiated services to customers, has entered the Japanese market. The company anticipates growth in the number of tourists visiting Japan and Korea.

Rising on the back of cost reduction efforts and unique sales strategies Air Busan’s strengths lie in its low airfares and unique, route-specific marketing strategies. Its most competitive offering, a round-trip between Fukuoka and Busan costs only around 14,000 yen with airfare and related charges included. What makes such low pricing possible is the company’s low-cost policy. By focusing on selling tickets over the Internet, the airline saves the cost of commissions to travel agencies. At Air Busan, over 60% of the tickets are sold Korean low-cost carrier (LCC) Air Busan began online, in contrast to an average 25% at major to service the routes between Busan and air carriers, said Bae, general manager of Air Fukuoka and between Busan and Osaka in Busan’s Management and Support Team. March 2010 and April 2010, respectively. At the same time, the airline company established Their cost reduction efforts are not limited to branch offices in Japan. It is expected that the ticket sales. Air Busan has also streamlined the new routes will encourage more Korean tourists organization with a combination of outsourcing to visit Japan. and efficient personnel allocation. The company has started sharing resources, like airplane Air Busan was established in August 2007 as a parts and components, with parent company joint venture between the City of Busan and 14 Asiana Airlines. local companies. Its headquarters is located in Busan Jin-Gu, Korea. The company was originally named Busan International Airlines Co., Ltd. and was later renamed to the present name in February 2008 when it received a capital injection from the Asiana Airline group and became a member of the group.

Using Gimhae International Airport as its hub, Air Busan operates daily domestic flights to and from Gimpo Airport in Seoul, and Jeju Airport in Jeju Island. Hyung Gil Bae, General Manager of Management and Support Team

Another unique feature of Air Busan is their and have already built a close trade relationship. adoption of different marketing strategies for Approximately one million people travel each service route. For example, the company between the two cities by ship each year. So offers special corporate customer services on Fukuoka was our first choice.” For people in flights to and from Gimpo, because most of the southern Korea, flying to Japan directly from passengers are flying for business purposes. By Busan is geographically closer and more signing up for the corporate program, a convenient than flying from Gimpo or the business customer can save up to 25% on Korean hub airport, Inchon. airfare. This program is convenient for frequent business travelers, who can enjoy greater In March 2010, Air Busan started its service discounts on air tickets by flying more often with between Busan and Fukuoka. The following Air Busan. April, the company also launched a service between Busan and Osaka, where many Korean The company offers these original programs reside. In addition to the current regular flights primarily because “major carriers can arm to and from the two Japanese cities (twice a day themselves with mileage programs but on both routes), charter flights between Busan operating a mileage program is too burdensome and Narita began in July for a limited time. The for Air Busan,” said Bae. company will also start to work to attract more corporate customers in Japan. Both of which will In recognition of their distinct services, Air help contribute to an increasing number of Busan won the Best Service Innovation Award in visitors to and from Japan and Korea. the 2009 Korea Customer Satisfaction Management Award from the Korea Support by JETRO Management Association (KMA) in 2009. Air Busan Co., Ltd. (Korea) established branch offices in Fukuoka and Osaka Airports. To set up Entering into the Japanese market was Japan offices, they utilized the JETRO Invest “natural evolution” Japan Business Support Center (IBSC), The carrier’s hub city, Busan, is located close to receiving consultations with expert advisors on Fukuoka. “Most Koreans would first think of a wide-range of business matters, including Japan as a possible overseas trip destination,” corporate registration and media relations. and thus Air Busan’s decision to launch flight JETRO also facilitated meetings with business services to Japan was a natural evolution of its partner candidates. business, said Bae. Fukuoka was selected as the (August 2010) first destination in Japan because “Fukuoka and Busan are working to form an economic zone,

History

2007.8 Established Busan International Airlines Co., Ltd. 2008.2 Changed the corporate name to Air Busan Co., Ltd. Asiana Airlines became one of the major shareholders 2008.10 Began servicing the route between Busan and Gimpo 2008.12 Began servicing the route between Busan and Jeju 2010.3 Began servicing the route between Busan and Fukuoka 2010.4 Began servicing the route between Busan and Osaka

Japanese Operation

Established : 2010 Business : International airline service (Japan - Korea) Location : [Fukuoka branch] 778-1, Shimousui, Hakata-ku, Fukuoka, Fukuoka, Japan 812-0003 [Osaka branch] 1, Senshu-kuko Kita, Izumisano-shi, Osaka, Japan 549-0001 URL : http://jp.airbusan.com/AB/airbusan/japan/main.jsp