Home' Asian Aviation : AAV March 2011. Contents Helped by sharp growth in its international
passenger and cargo business, Korean Air
(KAL) returned to profitability in 2010, with
annual net income of 468.4 billion won
(US$656.8 million), The result reversed the
airline's 98.9 billion won loss a year earlier.
KAL attributes the result to the recovery
of the global aviation industry and a strong
rebound in international passenger demand.
The airline posted revenue of 11.46 billion
won, up 22 percent.
According to the airline, the South-East
Asia, Japan and China markets all showed
robust growth last year. KAL says it will
stay now focused on its expansion strategy,
while remaining vigilant to spot unexpected
challenges in the market. It remains
optimistic that 2011 will see higher growth in
international passenger and cargo traffic.
KAL adds that it aims by 2019 to increase
the proportion of revenue it gains from
premium first- and business-class passengers
to 50 percent.
In April, the carrier plans to launch daily
flights between Cheongju, South Korea and
Hangzhou, China, using Boeing 737-800
aircraft. The Chinese city is the capital of
Zhejiang province and will be the carrier's
28th destination in the fast-expanding
KAL will also increase frequencies to
Zhengzhou, Jinan and Kunming later this
year, while plans are underway to expand the
airline's presence in the second-tier Chinese
cities of Wuhan and Xi'an. The Seoul-based
national carrier currently offers 190 passenger
and 36 cargo flights a week to China.
The airline is to take delivery of the first
of its ten Airbus 380-800 aircraft, the
world's largest airliner, in May this year,
with additional aircraft arriving one-by-one
in June, July and August. The fifth will be
delivered in the fourth quarter of the year,
while the remaining five will be delivered on a
staggered basis from 2012 through to 2014.
The aircraft will be configured to seat 407
passengers in a three-class layout, with 12
first class seats, 94 in business, or 'prestige'
class and 301 in economy class. The entire
upper deck will be a dedicated prestige class
The first A380 will initially be utilised for
flights to Tokyo and Hong Kong, starting
1 June. Bangkok flights will be introduced
from 1 July, followed by services to New York
in August, using the airline's third aircraft,
and Los Angeles in October, using the
KAL says the introduction of A380 services
will probably significantly boost the number
of passengers travelling from China, Japan
and East Asia to Europe and the US.
Korean Air will be the sixth A380 operator
to date. The airline now has a fleet of 131
aircraft, serving 114 cities in 39 countries.
The International Civil Aviation Organisation
(ICAO) has suspended safety audits on airlines
in the Philippines indefinitely, due to alleged
political interference in the management of
the country's regulatory body.
The organisation called off an audit scheduled
for 7-8 December and another set for the
second quarter of this year.
The new management of Civil Aviation
Authority of the Philippines (CAAP) is seen as
politicised and unable to get private airlines
to implement reforms. Airlines are also not
being monitored according to international
The administration of President Benigno
Aquino has removed Alfonso Cusi as the
director general of CAAP, replacing him with
Ramon S Gutierrez. Six other executives were
also appointed to the management by the
ICAO's audit suspension will hamper the
removal of the Philippines from European
Union (EU) blacklist, banning the country's
airlines from operating to Europe, and the US
watchdog Federal Aviation Administration
(FAA) category 1 safety ranking for the
country's aviation industry.
The FAA in November 2007 downgraded
Philippines civil aviation safety to Category 2,
citing safety concerns in airport and airline
operations. The EU imposed its ban in March
2008 affecting all the country's carriers:
Philippine Airlines, Cebu Pacific Air, Zest
Airways, Spirit of Manila Airlines, Philippine
Airline Express and Southeast Asian Airlines.
The country's industry passed an audit carried
out by EU in October 2010, but without the
ICAO audit, it remains blacklisted.
An FAA audit, scheduled to take place by
mid-year, is also like to be called off. The US
aviation authority had planned to do the
audit in September 2009, but was asked by
Philippine officials to postpone it. -- William
ICAO suspends Philippines safety audits
Korean Air returns
to full-year profit
South Korea s national carrier currently offers 190
passenger and 36 cargo flights a week to China.
8 AsianAviation | MARCH 2011
Links Archive AAV February 2011 AAV April 2011 Navigation Previous Page Next Page