A small airline has big plans for 25 new planes

Hansung Airlines plans to add 25 planes to its two-plane fleet by 2010 and wants to join the race to become the first Korean budget airline to fly overseas, the company announced yesterday.
Hansung is buying the 72-seat planes from the French manufacturer ATR in a deal that took seven months to reach, said company spokeswoman Park Jin-ok.
Jeju Air is trying to do the same thing.
The ATR-72 planes will be put into service over a three-year period as soon as they are delivered, starting next year.
Hansung is paying 200 billion won ($215 million) for 20 of the planes. It also has a separate deal for five more planes this year. In total, Hansung will have 27 planes by 2010.
The company declined to comment on how it would pay for the planes.
ATR has agreed to train eight pilots for each of the 20 planes, for a total of 160 pilots.
Hansung, the country’s first budget airline, is optimistic about its future. “The new planes are for international flights,” said Park. “With the ATR-72s, flights to Japanese and Chinese cities will be possible.”
Hansung currently flies only from Seoul and Cheongju to Jeju Island. Industry watchers, however, doubt the government will allow it to fly internationally yet. Regulations prohibit Korean airlines to fly overseas until they’ve been in operation for at least three years. Hansung began operations in 2005.
Park said the regulations won’t matter. “We already have obtained the air operator certificate [qualification to operate flights]. With the local government’s support, we are sure Hansung will be able to operate international flights.”
Four airlines operate in Korea; Asiana, Korea Air, Hansung Airlines and Jeju Air. The latter two operate only domestically and use propeller-driven planes, not jets.
Hansung currently has two ATR-72s, but operates only one of them.

By Hwang Young-jin Staff Writer [yhwang@joongang.co.kr]