The domestic airline industry in Korea has been depressed by opening new highways and the high speed. The low cost carrier, which has been prevailing all around the world, was welcomed for revitalizing the domestic airline industry and increasing customer values. However, business performances of low cost airlines are not satisfactory in the all routes but Kimpo and Jeju air route. This study formulates a Blue ocean strategy as an attempt for value innovation in the domestic low cost airline industry. Based on the Strategic Canvas and ERRC Grid analyses, a few strategic alternatives are proposed such as activating Seoul Air Force Base and Korean City Air Terminal, improving the promotion to enhance the customers awareness about the safety of low cost carriers, introducing the supervisor system at the flight and maintenance, and securing latent customers in the south-east part of Seoul.