Category Archives: Korean Air

Korean Air receives approval from China on Asiana acquisition, awaits others

Korean Air has made this announcement:

The Ministry of Commerce of the People’s Republic of China (MOFCOM) announced its approval of Korean Air’s business combination with Asiana Airlines on December 26.

MOFCOM has demanded that the merged Korean Air-Asiana entity reduce its market share due to competition concerns, to which Korean Air has submitted remedies proposing to transfer slots to any new airlines wishing to start air services on nine routes where both Korean Air and Asiana Airlines operate. Five of the nine routes have been proposed by the Korea Fair Trade Commission (KFTC) earlier this year and an additional four routes have been advised by MOFCOM.

Korean Air expects MOFCOM’s approval of the business combination to play a positive role in the review process of the remaining competition authorities.

Currently, Korean Air is still waiting for business combination approvals from the U.S., E.U. and Japan, countries where reporting is mandatory, as well as the final approval from the U.K., where reporting is arbitrary. The U.K.’s Competition and Markets Authority (CMA) has accepted remedies submitted by Korean Air, but will gather opinions from the market before giving their official approval. Korean Air will continue to cooperate closely with the remaining competition authorities to ensure the review process is completed as soon as possible.

The airline submitted business combination reports to the nine countries that require reporting on January 14, 2021. Out of these nine countries, Korean Air has received approval from China, Korea, Turkey, Taiwan and Vietnam. The Thailand Competition Commission announced that submission of a business combination report was not necessary.

From countries where reporting is arbitrary, Korean Air has received clearance from Singapore, Malaysia and Australia. The Philippines has confirmed that the business combination report was not required.

 

Top Copyright Photo: Korean Air Airbus A330-323 HL8025 (msn 1611) SEA (Brian Worthington). Image: 959756.

Korean Air aircraft photo gallery:

Korean Air to add flights to China, Japan and Israel

Korean Air will resume services to Shanghai, Nanjing and Qingdao in China; Sapporo and Okinawa in Japan; and Tel Aviv, Israel.

Starting on November 20, the airline will operate flights once a week on its Shanghai route on Sundays.

Flights on the Incheon-Nanjing route will resume once a week on Wednesdays from December 7.

Starting December 11, the airline will resume services on the Incheon-Qingdao route, to operate once weekly on Sundays.

The airline has resumed operations on the Incheon-Dalian route once a week on Fridays starting on October 28, and has increased its frequency on Incheon-Shenyang and Incheon-Tianjin routes from once a week to twice a week, operating on Tuesdays/Fridays and Tuesdays/Saturdays, respectively.

Daily flights to Sapporo Chitose will resume on December 1.

Flights to Okinawa will resume on December 1, and will operate four times a week on Mondays, Thursdays, Fridays, and Sundays.

Flights to Tel Aviv will resume on December 26, and will operate three times a week on Mondays, Wednesdays and Fridays.

Top Copyright Photo: Korean Air Boeing 747-8B5 HL7642 (msn 60409) PAE (Brian Worthington). Image: 959359.

Korean Air aircraft photo gallery:

 

Korean Air Airbus A330-300 overruns the runway at Cebu in heavy rains

Korean Air Airbus A330-322 HL7525 operating flight KE631 from Seoul (ICN) to Cebu (CEB) on October 23, 2022 overran the runway in Cebu on landing in bad weather.

The aircraft is badly damaged (probable insurance write off).

There were no injuries.

The airport issued this statement:

Social media:

Top Copyright Photo: Korean Air Airbus A330-322 HL7525 (msn 219) NRT (Michael B. Ing). Image: 959201.

Korean Air aircraft slide show:

 

 

WestJet and Korean Air enhance codeshare agreement with addition of WestJet codeshare on flights to Seoul

WestJet and Korean Air have expanded their long-standing codeshare agreement with the placement of WestJet’s codeshare on Korean’s flights between both Toronto Pearson (YYZ) and Vancouver International (YVR) in Canada and Incheon International Airport (ICN) in Seoul, South Korea.

This is WestJet’s first reciprocal codeshare with an Asian partner.

With WestJet’s “WS” code now active for sale on Korean’s flights to Seoul, guests have more opportunities than ever before to combine WestJet and Korean flights to meet their trans-Pacific travel needs.

Top Copyright Photo: WestJet Airlines Boeing 787-9 Dreamliner C-GURP (msn 64975) LGR (Robbie Shaw). Image: 959061.

WestJet aircraft slide show:

Two airliners have a minor collision on the ramp at London Heathrow

Korean Air Boeing 777-300 (HL7782) was taxiing as flight KE908 to Seoul at London Heathrow Airport for departure on September 28.

The left wingtip of HL7782 collided with a parked Icelandair Boeing 757-200 (TF-FIK) preparing for departure to Keflavik. The rudder of TF-FIK was struck by the wingtip of HL7782.

Korean Air resumes the Seoul – Rome route

Korean Air on September 1, 2022 restored the Seoul (Incheon) – Rome (Fiumicino) route.

The route was suspended in 2020 due to the COVID-19 pandemic. South Korea has now effectively eliminated all of the travel restrictions due to COVID-19.

The flight was operated with a Boeing 777-200 ER.

Ceremonies were held at gate E23 by Aeroporti di Roma and Korean Air.

Marco Finelli reporting from Italy.

Korean Air aircraft photo gallery:

Korean Air to launch Budapest route and resume flights to Dubai, Phuket and Chiang Mai

Korean Air will launch its inaugural flight to Budapest, Hungary from October 3. The airline will operate a 269-seat Boeing 787-900 once a week on Mondays departing from Seoul Incheon at 11:25 am and landing in Budapest at 5:05 pm. The return flight leaves the next day at 7:15 pm and arrives in Seoul Incheon one day later at 12:50 pm. There will also be an extra flight on Saturday October 29.

From October 31, Korean Air will offer flights twice a week that depart from Seoul Incheon at 12:25 pm on Mondays and Saturdays and arrive in Budapest at 5:15 pm. The returning flights will take off on the same day at 7:35 pm and land in Seoul Incheon at 2:15 pm the next day.

Following the launch of cargo services to Budapest in February 2020, Korean Air plans to bolster the competitiveness of its European network, especially in Eastern Europe.

Resuming routes to Dubai

From October 1, Korean Air will resume its routes to the United Arab Emirates and Thailand, which have been suspended since March 2020.

Korean Air will restore its Middle East network by resuming services to Dubai three times a week. The Incheon-Dubai route will be served by the airline’s A330-300 fleet, and will depart from Seoul Incheon every Monday, Thursday and Saturday at 1:20 pm and arrive in Dubai at 6:55 pm. The return flight will depart on the same day at 11:00 pm and arrive in Seoul Incheon at 12:40 pm the following day.

Resuming routes to Phuket and Chiang Mai

The airline will also resume services to Phuket, a popular honeymoon destination in Thailand. The flights will depart from Seoul Incheon on Wednesdays, Thursdays, Saturdays and Sundays at 5:55 pm and land in Phuket at 10:00 pm. Return flights leave Phuket on the same day at 11:20 pm and arrive in Seoul Incheon at 7:55 am the next day.

Korean Air is also reinstating flights to Chiang Mai with a Boeing 737-800. The airline will offer four flights a week – every Wednesday, Thursday, Saturday and Sunday – departing from Seoul Incheon at 5:55 pm and arriving in Chiang Mai at 9:30 pm. The return flights leave Chiang Mai at 11:00 pm and arrive in Seoul Incheon at 6:25 am the following day.

Korean Air will continue to closely monitor the market and return of demand, and reinstate our remaining suspended routes accordingly.

 

Korean Air aircraft photo gallery:

Korean Air posts an operating profit of $569.2 million in the fiscal second quarter

Korean Air issued this financial report:

● Korean Air achieved a revenue of KRW 3.3324 trillion (USD $2.5775 billion) and an operating profit of KRW 735.9 billion (USD $569.2 million) in the second fiscal quarter. Despite continued high oil prices and volatile exchange rates over the course of the second quarter, the airline’s gradual recovery in passenger demand and robust cargo demand led to improved results year-on-year.

● Growing travel demand due to dropping COVID cases and borders reopening led the airline to post KRW 874.2 billion in passenger revenue in the second quarter, a 307% year-on-year increase.

● Korean Air recorded a cargo revenue of KRW 2.1712 trillion, a 44% increase year-on-year. While the prolonged war in Ukraine and the lockdowns in China continued to disrupt the global logistics supply chain into Q2, the airline managed to maximize profit by actively transporting high-demand emergency relief supplies, automobile parts, semiconductors and electronics.

● The airline expects passenger traffic to recover slower than originally forecasted in the second half of the year, as external factors such as the pandemic and oil prices linger. The airline seeks to gradually increase its passenger network capacity to 50% of pre-pandemic levels by September, and will continue to respond flexibly to demand.

● With the resumption of passenger services following border reopenings, the airline expects to procure additional air cargo capacity through passenger fleet belly cargo space. The airline looks to maximize profit by utilizing scheduled passenger services; operating routes based on regional demand and capacity fluctuations; and through fleet optimization.

● Despite intensified global inflation and economic contraction, Korean Air is committed to normalizing its passenger business and to maximizing its cargo business profit.

Korean Air aircraft photo gallery:

Korean Air issues its tentative financial results for first quarter 2022

Korean Air issued this financial report:

  • Korean Air posted a revenue of KRW 2.8052 trillion (USD 2.3168 billion) and a record quarterly operating profit of KRW 788.4 billion (USD $651.1 million) in its first quarter financial results.
    ※ Previous quarterly operating profit record: Q4 2021, KRW 704.4 billion
  • Revenue from the airline’s passenger flight operations in the first quarter increased by 128% year-on-year to KRW 359.8 billion. Although passenger demand remained sluggish due to the spread of the COVID-19 Omicron variant, demand is gradually recovering as countries ease their entry restrictions one by one. On March 21, Korea lifted the mandatory quarantine for fully vaccinated travelers, helping to boost travel demand.
  • The airline’s cargo flight operations pulled in a revenue of KRW 2.1486 trillion in the first quarter. Uncertainties in the air cargo market persisted due to various external factors such as global supply chain bottlenecks, reduction in capacity on Europe routes and high fuel prices. Korean Air is taking preemptive measures to maintain its air cargo capacity through close management of ground handling operations and flexible network operations. The airline maximized its revenue through increasing freighter operation rates and using grounded passenger jets on cargo routes.
  • Korean Air’s passenger business is expected to quickly recover in 2022, as more countries continue to open up their borders and ease entry restrictions. The recovery of passenger demand will vary by route and region, and the airline will closely monitor and flexibly respond to the market and changing quarantine policies of its network.
  • Recovery in global passenger demand is foreseen to gradually boost global air cargo capacity, but instability in regional air cargo markets is expected to persist due to major Chinese city lockdowns and the war in Ukraine. Korean Air will tackle such uncertainties by actively responding to market changes through flexible operations and effective management of ground handling operations.
  • While the entire industry was suffering from COVID-19, Korean Air significantly improved its financial structure by reducing debt. At the end of 2019, the airline’s debt ratio was 814 percent, but as of the first quarter of 2022, the number decreased by 559 percentage points to 255 percent, the lowest debt ratio since 2011, when International Financial Reporting Standards (IFRS) were introduced. Moreover, Korean Air has secured over KRW 4 trillion worth of cash and cashable assets, enabling the airline to flexibly respond to various market uncertainties, such as increasing interest rates. Korean Air plans to maintain financial stability through profitable operations and by managing its debt ratio and liquidity.
Korean Air aircraft photo gallery: