On stage at Growth Frontiers Singapore, Korean Air Lines chairman Walter Cho, shared his experiences of navigating the pandemic through the success of its cargo unit with chief executive officer of Air Lease Corporation (ALC) John Plueger in a fireside chat, where he also touches on the future for the airline beyond the expected approval of its merger with Asiana.
Cho commented that the benefits of the merger were clear as well as cost synergies and efficiencies, the network is ripe for overhaul: “Asiana has been our healthy rival for the past 32 years, with each airline operating the same routes sometimes only 30 minutes apart,” he said. “If the merger happens, I am planning to diversify the schedule to provide passengers with more choice.”
The merged airline will also be able to right size its fleet, which will be essential since the combined airline will have almost every aircraft type in its fleet and too many to efficiently serve its revitalised network. “That’s a big opportunity for you John,” said Cho, “we have to simplify and streamline our fleet… and on the Korean Air side we are trying to modernise and simplify the fleet type.”
The airline is also focused on growing its MRO business, said Cho, noting that the company was building a new facility near Incheon airport to service engines.
Like many airlines, Korean Air is also focused on how to forge a more sustainable future. Cho detailed that along with modernisation of its fleet, it was investing in the use of sustainable aviation fuel (SAF) specifically for its cargo journeys and expanding to its passenger fleet as the new aircraft are delivered.
Korean Air was able to navigate the pandemic thanks to the strength of its cargo arm, and although Cho recognised a softening in the freight market he sees continued demand for air freight over the longer term.
Airline Economics Growth Frontiers Singapore delegates will be able to view the entire fireside chat after the conference when the recording of all of the sessions will be live on our website.