Air Busan, South Korea's low-cost carrier, could spark a price war with Dragonair and Korean Air when it launches direct flights next week between Hong Kong and its base in Pusan.
Kang Kyeng-dae, the airline's Hong Kong general manager, said it would offer fares as low as 15 to 30 per cent of the prices charged by the two rivals.
Corporate travellers and travel agents will be offered further discounts compared with the normal internet fares, while all passengers will be given discounts at a raft of restaurants, hotels and shops.
Kang said the actual fare levels had yet to be decided. But checks on the three airlines' websites show the savings for passengers on Air Busan could be greater.
Air Busan is offering a promotional return fare to Hong Kong of 149,000 won (HK$1,073), although the fare level rises up to 800,000 won, depending on the type of ticket held.
By comparison, Dragonair is offering a basic return fare of HK$2,800 plus HK$735 in tax and surcharges for the route today. The cheapest all-in Korean Air fare is HK$3,501.
Kang said traffic rights were expected to be given by aviation regulators by the end of this week, ready for the first flight to Hong Kong on May 18. The return flight from Hong Kong will be on the following day.