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Due to the rise of budget carriers, Korean Airline Co. is set to launch a low-cost carrier that will fly both domestic and international flights (short- and mid-haul).

The launching of Korean Air's budget airline is set to be completed in 2 to 3 years time. This is aimed to compete with the growing number of budget airlines in the North Asian region.

Planned international flights routes between South Korea and China, Japan and the Philippines will be serviced by Boeing 737s and will be run by Korean Air's affiliate Hanjin Group.

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