Future of Korean aviation market bright: Boeing official

By Nam Kwang-sik
SEOUL, Oct. 20 (Yonhap) -- South Korea's aviation market is expected to grow in
the coming years thanks to the increasing liberalization of air transport and
economic growth, a high-ranking Boeing Co. official said Tuesday.
"The future (South Korean aviation) market shows great promise," said Randy J.
Tinseth, vice president for marketing at Boeing's commercial airplane unit, in a
news conference here.
"(Over) the next four years Korea expects a rather dynamic recovery in terms of
the economy," he said, adding that increasing liberalization of air transport
between South Korea and other countries will further stimulate demand for air
travel.
The South Korean economy is expected to grow by an average of 3.7 percent
between 2010 and 2013, Tinseth said, citing a report by Global Insight, a global
provider of economic and financial information.
The recent rapid growth of budget carriers in South Korea will also contribute
to the future growth of the local aviation market, he said.
Four South Korean low-cost carriers saw their share of the domestic market top
30 percent in the third quarter of this year, helped by price competitiveness,
according to industry sources.
The carriers -- Jeju Air Co., Jin Air Co., Air Busan Co. and Eastar Jet Co.-- had
a combined market share of 31.1 percent in the July-September period, up from
25.8 percent in the second quarter and 20.8 percent in the first quarter, the
sources said.
The vice president also predicted the global air cargo market will improve in
2013.
"The cargo market, which is very important to the airlines of Korea, has been
declining last year and this year," he said, noting that air cargo traffic fell
by 6 percent in 2008 and is expected to drop by 15 percent this year.
"We do not expect to reach the peak of the cycle in terms of cargo which was in
2007 probably until 2012, maybe as long as 2013," said Tinseth.
ksnam@yna.co.kr
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