Budget airlines’ launch of Bali routes could cut ticket prices

(Jeju Air)

South Korean low-cost carriers (LCCs), such as Jeju Air Co. and Air Busan Co., are set to challenge Korean Air Lines Co.‘s dominance over the Bali, Indonesia route, a market that the Korean flagship carrier has until now dominated operationally among Korean airlines.

This shift to a more competitive landscape is expected to reduce ticket prices from more than 1 million won ($736.86) round trip to less than half that amount.

According to sources from the aviation industry on Monday, Jeju Air will be the first Korean LCC to launch a new Incheon-Bali route, offering seven flights per week starting on October 27th, 2024. The airline will offer a limited-time promotional fare of 99,300 won for a one-way ticket (including fuel surcharge and airport tax) until October 31st.

Air Busan will also begin operating a new route from Busan (Gimhae Airport) to Bali, with four flights per week starting on October 30th. To celebrate its inaugural flight, the airline will offer one-way tickets at a special price of 249,000 won until October 17th.

Korean Air and Garuda Indonesia were the only two carriers to operate the Incheon-Bali route. With Korean Air effectively monopolizing the route, ticket prices have been considered high relative to the flight time of around 7 hours, with one-way fares typically ranging from 500,000 won to 800,000 won.

With LCCs entering the market, Korean Air is also preparing to respond proactively. It will increase its Bali route flights from 11 times a week to 14 times a week (twice a day) starting on October 20th. It also plans to deploy the latest Boeing 787-10 Dreamliner from October 27th, providing travelers with a more comfortable experience.

As more seats become available, Korean Air’s one-way fares on the Bali route have dropped to the 300,000 won range as of early November 2024.