South Korea’s full-service carrier Asiana Airlines Inc. will introduce new in-flight services and turn previously free services into paid services as part of efforts to remain competitive against its smaller rivals low-cost carriers that have been eating away at the market for the full-service carrier.

According to multiple sources from the airline industry on Wednesday, Asiana Airlines will offer passengers premium economy class seats that offer more space than economy class seats but are more affordable than business class seats.

Such a move is in line with the growing trend among global passenger carriers to reduce the number of first-class seats that are often left empty on board by replacing them with alternative premium seats. The company expects this would help increase overall seat occupancy rate as the market for frugal business travelers and economy fliers valuing comfort over price is burgeoning.

Asiana Airlines’ premium economy class seat will likely be charged 1.5 times higher than a standard economy class seat, but designed to be 50 centimeters wider. The new seats will be introduced in the first quarter of next year starting with its next-generation A350-900 aircraft. Asiana’s move follows the introduction of a premium economy class by its global peers such as Delta Airlines, Lufthansa, Singapore Airlines, Cathay Pacific, Air France and Iberia.

In a move to court high-value business travelers, Asiana Airlines has also introduced a new membership service where passengers can unlimitedly upgrade their business class seats to first class seats at a cost of 1.3 million won ($1,107) per year. A single-use membership costs 700,000 won. The service is available for flights to and from Incheon and Los Angeles, New York, and Frankfurt, with no service on Incheon-Frankfurt route temporarily from December 26 to February 28.

As part of efforts to improve profit, Asiana Airlines next month will also start to charge between 20,000 won and 100,000 won for a front, roomier economy seat near an emergency gate that used to be reserved free of charge.

The carrier already tightened pricing on baggage earlier this year. Before the change in the baggage pricing policy, each traveler flying on economy class, non-United States routes was allowed to check in up to 20 kilograms of bags in total regardless of how many packages they would send. But now they are allowed to check in only one free bag per person.

The country’s full-service carriers such as Asiana Airlines and Korean Airlines Co. have been facing fierce competition from their budget rivals that are rushing to venture into the long-haul flight service that has been traditionally dominated by the two national flag carriers. Both national flag carriers have already lost many of customers in domestic and short-distance services to the low-cost carriers.

By Kim Jung-hwan

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