Korean Air signs interline agreement with Air Premia for U.S. to Asia routes

Korean Air signed an interline agreement with budget airline Air Premia to connect the latter’s flights leaving from the United States to other countries in East Asia.

A Boeing 787-9 carrier operated by budget airline Air Premia [AIR PREMIA]

Korean Air signed an interline agreement with budget airline Air Premia to connect the latter’s flights leaving from the United States to other countries in East Asia.

Air Premia announced the agreement on Monday, saying it will start selling tickets that connect its flights coming from the United States to Korean Air’s flights to East and Southeast Asian regions. An interline agreement allows passengers to transfer planes without having to pick up their luggage in between flights or check-in multiple times.

For instance, passengers boarding Air Premia in New York will be able to transfer to a Korean Air flight at Incheon International Airport to cities in Japan and China as well as Bangkok, while passengers leaving from Los Angeles will be able to transfer to Bangkok, Ho Chi Minh, Manila and Singapore. Air Premia flights from San Francisco, where the airline commenced operations since May 17, will connect to Singapore.

This is the first time Korean Air has signed an interline agreement with a domestic airline, and Air Premia’s first time acquiring transit routes to Japan and countries in Southeast Asia.

The agreement is seen by aviation industry insiders to be a measure taken by Korean Air to appease the U.S. Department of Justice (DOJ) over competition concerns due to its proposed merger with Asiana Airlines.

Air Premia currently operates flights from Incheon International Airport to key U.S. destinations such as New York, Los Angeles, Honolulu and San Francisco. The routes are not only key to the budget carrier’s expansion but also to Korean Air’s merger with Asiana Airlines, as long-haul flights, the biggest revenue generators for airlines, are the focal point of concern from the U.S. DOJ regarding a potential monopoly.

Korean Air is also set to lease four Boeing 787-9 Dreamliners to Air Premia — two in 2024 and two at a later unspecified date — as part of addressing the competition concerns, according to reports in February. Air Premia currently operates five Dreamliners.

Air Premia is also set to close an interline agreement with Alaska Airlines that will allow connecting flights for 110 routes in the United States and six routes to regions in South and Central America, including Mexico and Costa Rica, according to its news release on Monday.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]