Intense competition for new aircraft acquisition is unfolding in the aviation industry, which has reduced the number of planes due to the pandemic but now sees a resurgence in international passenger traffic after the reopening around the world.

With a global increase in aviation demand, there is a shortage of available leased aircraft and lease rates are rising steeply.

According to sources on Thursday, a total of 13 new passenger aircraft are set to be introduced by Korean airlines this year. Asiana Airlines Inc. and JejuAir Co. will each add four aircraft, while Korean Air Lines Co. and Jin Air Co. will increase their fleets by two aircraft each. T’way Air Co. is planning to add one aircraft.

Although Korean Air will introduce the most passenger aircraft among domestic airlines this year with a total of 16, the net increase is only two due to expiring lease contracts and a reduction in existing planes.

The aviation industry’s proactive pursuit of new aircraft is driven by the recent sharp increase in international passenger demand, which had declined during the pandemic. In April, the number of passengers on the Incheon-Narita route reached 269,459, surpassing the pre-pandemic level of 228,075 in April 2019. During the same period, the number of passengers on the Incheon-Bangkok and Incheon-Sydney routes climbed by 2.1 percent and 64.8 percent, respectively.

While passenger demand has surged, the aviation industry’s pace of securing aircraft remains slow. As of early this year, major Korean airlines had a total of 319 passenger aircraft, which is 8.3 percent less than 348 in 2019. Even with the planned net increase of 13 aircraft by the end of the year, there is still a shortage of 16 aircraft.

The shortage of passenger aircraft naturally leads to a reduction in international flight frequencies. In April, the number of international flights at the Incheon International Airport reached 12,515, which is only 77 percent of the figure from 16,247 in April 2019. Particularly in regional airports, the shortage of international flights is more pronounced. During the same period, international flight frequencies at the Gimpo International Airport had recovered to 94.6 percent of the pre-pandemic level, while Gimhae and Daegu international airports remained at 49.1 percent and 26.1 percent, respectively.

According to British aviation analytics firm Cirium, lease rates for the Boeing Co. 737-800NG have risen by 32 percent in the past year.

By Kim Hee-su and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]