South Korea's skies get crowded as travel mania spurs six budget carriers

Singapore

SOUTH Korea may be small with about a 30th of China's population. Yet, its skies are about to get more crowded with a sixth budget airline, beating its giant neighbour that boasts two major no-frills carriers.

Asiana Airlines Inc's fully owned new low-cost unit, Air Seoul Co, is poised to receive a government permit on Wednesday as it takes over some of the short-haul flights that are less profitable for its parent. The carrier will start flying on July 11 on the world's busiest Gimpo-Jeju route for about three months before venturing overseas.

The latest addition is a sign of surging demand for air travel as more South Koreans, spoiled for choice, take advantage of affordable fares for a relaxing vacation in Japan's hot springs or shopping trips to Hong Kong. While competition is good news for fliers, it may hurt …