Korean Air

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Korean Air
대한항공
Daehan Hanggong
KoreanAir logo.svg
IATA
KE
ICAO
KAL
Callsign
KOREANAIR
Founded 1946 (as Korean National Airlines)
Commenced operations March 1, 1969
Hubs
Focus cities
Frequent-flyer program SKYPASS
Airport lounge KAL Lounge
Alliance SkyTeam
Subsidiaries Jin Air
Fleet size 158
Destinations 133
Company slogan Excellence in Flight
Parent company Hanjin Group
Headquarters Gonghang-dong, Gangseo-gu, Seoul, South Korea
Key people Cho Yangho (Chairman & CEO)
Cho Choonghoon (Entrepreneur/Founder)
Revenue Decrease US$ 11.68 billion (2013)[1]
Operating income Decrease US$ (20) million (2013)[1]
Net income Decrease US$ (222) million (2013)[1]
Total assets Decrease US$ 22.6 billion (2013)[1]
Total equity Decrease US$ 2.7 billion (2013)[1]
Website koreanair.com
Korean name
Hangul
Hanja
Revised Romanization Daehan Hanggong
McCune–Reischauer Taehan Hanggong

Korean Air Lines Co., Ltd. (Hangul: 대한항공; RR: Daehan Hanggong) (KRX: 003490), operating as Korean Air, is the flag carrier airline of South Korea and the largest airline in South Korea based on fleet size, international destinations and international flight. The airline's global headquarters located in Seoul, South Korea.

Korean Air's international passenger division and related subsidiary cargo division together serve 130 cities in 45 countries, while its domestic division serves 20 destinations. It is among the top 20 airlines in the world in terms of passengers carried and is also the top-ranked international cargo airline. Incheon International Airport serves as Korean Air's international hub. Korean Air also maintains a satellite headquarters campus at Incheon.

Korean Air was originally founded as the Korean National Airlines in 1946. After several years of service and expansion, the airline was fully privatized in 1969 and commenced operations on the 1st of March 1969. The airline celebrated its 45th anniversary in 2014. The majority of Korean Air's pilots, ground staff, and flight attendants are based in Seoul.

Korean Air is a founding member of the SkyTeam, and the parent company of Jin Air. The alliance has since become the second largest alliance in the world, second only to Star Alliance. It was voted Asia's best airline by Business Traveler readers in 2012.[2] Korean Air is currently an official sponsor of the 2014 Asian Games .

History[edit]

A Korean National Airlines Douglas DC-4 at Oakland in 1953
KAL introduction of the Boeing 747 for its international Pacific routes in 1973.

Founding[edit]

Korean Air was founded by the South Korean government in 1962 as Korean Air Lines to replace Korean National Airlines, which was founded in 1946. On 1 March 1969, the Hanjin Transport Group took control of the airline. Long-haul freight operations were introduced on 26 April 1971, followed by passenger services to Los Angeles International Airport (LAX) on 19 April 1972.[3]

International flights to Hong Kong, Taiwan, and Los Angeles were flown with Boeing 707s until the introduction of the Boeing 747 in 1973.[citation needed] In 1973, the airline introduced Boeing 747s on its Pacific routes and started a European service to Paris, France using the 707 and then DC-10. In 1975, the airline became one of the first Asian airlines to operate Airbus aircraft with the purchase of 3 Airbus A300s, which were put into immediate service on Asian routes.[4] Since the South Korean planes were prohibited to fly over the Soviet and North Korean airspace during the era, the European routes had to be designed eastbound, such as Gimpo-Anchorage-Paris.

Change to 'Korean Air'[edit]

A blue-top, silver, and redesigned livery with a new corporate "Korean Air" logo featuring a stylized Taegeuk design was introduced on 1 March 1984, and the airline's name changed to Korean Air from Korean Air Lines. This livery was introduced on its Fokker F28s.[citation needed] It was designed in cooperation between Korean Air and Boeing. In the 1990s, Korean Air became the first airline to use the new MD-11 to supplement its new fleet of Boeing 747-400 aircraft; however, the MD-11 did not meet the airline's performance requirements and they were eventually converted to freighters. Some older 747 aircraft were also converted for freight service.[citation needed]

Korean Air takes delivery of its first Airbus A380 at Toulouse-Blagnac Airport, France, 25 May 2011.

Further expansion and founding of Jin Air[edit]

In the 1980s, Korean Air's head office was in the KAL Building on Namdaemunno, Jung-gu, Seoul.[5]

As of 2007, Korean Air was in negotiations to open its China hub in Beijing or Shanghai by the end of 2008.[citation needed]

On 5 June 2007, Korean Air said that it would create a new low-cost carrier called Jin Air in Korea to compete with Korea's KTX high-speed railway network system, which offers cheaper fares and less stringent security procedures compared to air travel, which started its scheduled passenger service from Seoul to Jeju on 17 July 2008. Korean Air announced that some of its 737s and A300s would be given to Jin Air.[citation needed]

By 2009, Korean Air's image had become more prestigious, differing from the airline's late-1990s image, which had been tarnished by several fatal accidents.[6]

In mid-2010, a co-marketing deal with games company Blizzard Entertainment sent a 747-400 and a 737-900 taking to the skies wrapped in StarCraft II branding. In August 2010, Korean Air announced heavy second-quarter losses despite record high revenue.[7] In August 2010, Hanjin Group, the parent of Korean, opened a new cargo terminal at Navoi in Uzbekistan, which will become a cargo hub with regular Incheon-Navoi-Milan flights.[8]

Korean Air currently owns five hotels: two KAL hotels on Jeju island, the Hyatt in Incheon, Waikiki Resort in Hawaii, and a currently redeveloping hotel/office building called the Wilshire Grand Tower. This building in downtown Los Angeles will house the largest InterContinental Hotel in the Americas in what will be the tallest building in Los Angeles.[9]

In summer 2013, Korean Air acquired 44% of Czech Airlines stake. Czech Airlines will serve as its subsidiary, and Prague Ruzyne Airport will serve as Korean Air's secondary hub. Korean Air is in the process of transferring aircraft to Czech Airlines - one Airbus A330-300 was transferred in June 2013, and more are expected to come. Korean Air is currently thinking about transferring Airbus A330-300 or Boeing 747-400 to Czech airlines, after they are replaced with Airbus A330-200 and Airbus A380-800 respectively.

Corporate affairs and identity[edit]

Major centers[edit]

One of the airline's offices, the KAL Building in Seoul

Korean Air's main global headquarters campus, the Korean Air Operations Center (대한항공 빌딩[10]), is located in Gonghang-dong, Gangseo-gu in Seoul. Korean Air also maintains a domestic office campus at Gimpo International Airport in Seoul. Korean Air's lesser domestic hubs are based at Jeju International Airport, Jeju and Gimhae International Airport, Busan.[3] The maintenance facilities are located in Gimhae International Airport.

The airline had 16,623 employees (as of March 2007).[3]

Korean Air's main global headquarters campus, the Korean Air Operations Center (대한항공 빌딩[10]), is located in Gonghang-dong, Gangseo-gu in Seoul.[11]

The North America headquarters for passenger operations is located in Westlake, Los Angeles, United States, while its cargo operations for North America are on the property of Los Angeles International Airport in Westchester, Los Angeles.[12]

The European headquarters are located in the City of Westminster, London.[13] The French office is in the 1st arrondissement of Paris.[14] The German office is in Westend, Frankfurt.[15]

The Commonwealth of Independent States headquarters are located in Tverskoy District, Central Administrative Okrug, Moscow, Russia.[16]

Its Southeast Asia/Oceania headquarters are in the Ocean Tower (海洋大楼 Hǎiyáng Dàlóu) in Singapore.[17]

Its Japanese headquarters are in the Tokyo Korean Air Building (KALビル KAL Biru?) in Shiba, Minato, Tokyo.[18]

Its Chinese offices are in the Hyundai Motor Tower (现代汽车大厦 Xiàndài qìchē dàshà) in Chaoyang District, Beijing.[19] Its Hong Kong sales office is in Tower 2 of the South Seas Center (南洋中心 Mandarin: Nányáng Zhōngxīn) in Kowloon.[20]

Destinations[edit]

Korean Air destinations

Korean Air serves 114 international destinations in 50 countries on all 6 major continents, excluding codeshares. The airlines's international hub is Incheon International Airport in Incheon. The airline also flies 13 domestic destinations within South Korea. KAL operates between Incheon and 22 cities in Mainland China, and along with Asiana Airlines, it is one of the two largest foreign airlines to operate into the People's Republic of China.[21]

Korean Air, along with British Airways, Delta Air Lines, Emirates, Etihad Airways, Qantas, Qatar Airways, Singapore Airlines, South African Airways and United Airlines, is one of few airlines that fly to all six inhabited continents.[22]

Korean Air Europe headquarters in London

Codeshare agreements[edit]

Korean Air has codeshare agreements with the following airlines (as of February 2014):[citation needed]

Korean Air is an airline partner of Skywards, the frequent-flyer program for Emirates. Skywards members can earn miles for flying Korean Air and can redeem miles for free flights. In addition, on certain routes, Korean Air's codesharing agreement with Malaysia Airlines also allows Malaysia Airlines' Enrich members to earn miles even when they are flying with Korean Air.[citation needed]

Fleet[edit]

A Korean Air Boeing 777-300ER on short final to Chep Lap Kok Airport in 2011.
A Korean Air Airbus A330-200 taxiing at Nagasaki Airport, Japan in 2007
A Korean Air Boeing 747-400 landing at London Heathrow Airport, England in 2004.
A Korean Air Airbus A380 taking off from Hamburg Airport in 2011

Korean Air's fleet consists of the following aircraft (as of December 2014):[27][28][29]

Korean Air fleet
Aircraft In service Orders Passengers Notes
F C Y Total
Airbus A330-200 8 2 6 24 188 218
Airbus A330-300 17 3 18 252 276
Airbus A380-800 10 12 94 301 407
Boeing 737-800 19 6 12 126 138
150 162
135 147
Boeing 737-900 16 8 180 188
Boeing 737-900ER 6 9 12 147 159
Boeing 747-400 15 10 61 262 333 To be phased out by 2017[30]
12 335
12 45 308 365
Boeing 747-8I 10
TBA
Deliveries from 2015[31]
Boeing 777-200ER 18 8
28
212 248
8 28 225 261
Boeing 777-300 4 6 35 297 338
Boeing 777-300ER 13 12 8 56 227 291 2 will be leased from ALC, with deliveries on November 2014 and May 2015[32]
Boeing 787-8 1
TBA
Boeing 787-9 10
TBA
Order converted to Boeing 787-9 from 787-8[33]
Bombardier CS300 10
TBA
10 options and 10 purchase rights
Korean Air Cargo fleet
Boeing 747-400ERF 8
N/A
Boeing 747-400F 9
N/A
Boeing 747-8F 5 2
N/A
Boeing 777F 4 1
N/A
Total 158 66

Korean Air is the first Airbus A380 customer to dedicate the entire upper deck of the A380 to business class passengers (comprising 94 of Korean Air’s lie-flat Prestige Class business seating). Korean Air announced on 4 December 2009 that it would order five Boeing 747-8 Intercontinental aircraft worth $1.5 billion in list prices.[34] This is in addition to the seven Boeing 747-8F freighters Korean Air Cargo will be operating.[35] On 6 February 2012, the first Boeing 747-8F and Boeing 777F aircraft were delivered to Korean Air becoming the first airline in the world to operate both of these aircraft.[36]

Retired fleet[edit]

A Korean Air Boeing 727-200

The company has previously operated the following aircrafts (in alphabetical order):

Aircraft interiors[edit]

A Boeing 777-300 being serviced at Narita International Airport

Korean Air offers four types of first class, three types of business (Prestige) class, and two types of economy class.

First Class[edit]

First Class seats include "Kosmo Suites" seats on the entire Boeing 777-300ER fleet, some of the 777-200ER fleet, and the whole Airbus A380 fleet; "Kosmo Sleeper" on some of the Boeing 747-400 fleet and the rest of the Boeing 777-200ER fleet; "Sleeper" on some of the Boeing 747-400 fleet, some of the 777-300 fleet, and all of the Airbus 330 fleet; and "old first class" seats. All "Kosmo Suites", "Kosmo Sleeper" and "Sleeper" seats recline to 180 degrees. "Old first class" seats recline up to only 150 degrees, although these seats are currently being phased out.

Prestige Class[edit]

Prestige Class seats include "Prestige Sleeper" seats on all Boeing 777-300ERs and Airbus A380s, as well as 777-200ER aircraft that feature "Kosmo Suites" seats; "Prestige Plus" seats on most of the Boeing 777-200ER fleet, most of the Boeing 747-400 fleet, and one Boeing 777-300; and "old Prestige Class" seats. "Prestige Sleeper" seats recline to 180 degrees, while "Prestige Plus" seats recline up to 172 degrees. "Old Prestige Class" seats recline up to only 138 degrees, although these seats are being phased out except for on Airbus A300-600, Boeing 747-400 Combi, and Boeing 737 aircraft.

Economy Class[edit]

Economy Class seats recline up to 121 degrees. A new type of seat called "New Economy Class" is being installed on all Boeing 777-300ER and Boeing 777-200ER aircraft with Kosmo Suites, all Boeing 777-300 aircraft, some Airbus A330-300 aircraft, some Airbus A330-200 aircraft, and the Airbus A380 aircraft (factory-installed).

The "Kosmo Suites" seats and the "Prestige Sleeper" seats were first introduced in the Boeing 777-300ERs in May 2009.[37] Both seats could stretch to 180 degrees, and became more private than seats before.

The color 'Celadon Green', which represents the characteristics of Korea, is incorporated as the primary dominant colors to all "First Class" and "Prestige Class" seats. Dark blue and Mocha Chocolate colors are used on the economy seats.

The Korean Air Airbus A380-800 aircraft also feature an inflight bar called the Celestial Bar in partnership with Absolut Vodka, featuring a range of Absolut cocktails, along with an integrated lounge space.[38] It is located on the upper deck Business Class cabin, and is accessible only to First and Prestige class passengers.

On the lower deck of the A380, there is a Lancôme-designed[39] duty-free shop located in the rear of the cabin that is available to all passengers.

Loyalty program[edit]

SKYPASS is the frequent-flyer program of Korean Air. "SKYPASS" also refers to the blue card which Korean Air frequent-flyers are given. The motto of SKYPASS is "Beyond your Imagination". The program's elite levels are comparable to those of other airlines' frequent-flyer programs, requiring members to fly a 30,000 miles per two-year cycle (initial entry into this level requires 50,000 miles). Qualification for the highest level is based on lifetime flight miles, requiring a customer to fly 1 million miles for Million Miler, which is the highest elite status, or 500,000 miles for Morning Calm Premium, which comes second. Both membership levels are eligible for SkyTeam Elite Plus privileges. Membership in these levels are granted for life.

Aerospace research and manufacturing[edit]

Korean Air is also involved in aerospace research and manufacturing. The division, known as the Korean Air Aerospace Division (KAL-ASD), manufactures licensed versions of the MD 500 and UH-60 Black Hawk helicopters, as well as the F-5E/F Tiger II fighter aircraft,[40] the aft fuselage and wings for the KF-16 fighter aircraft manufactured by Korean Aerospace Industries,[41] and parts for various commercial aircraft including the Boeing 737, 747, 777, 787 and the Airbus A330, and A380.[42] In 1991 the division designed and flew the Korean Air Chang-Gong 91 light aircraft. KAA also provides aircraft maintenance support for the United States Department of Defense in Asia and maintains a research division with focuses on launch vehicles, satellites, commercial aircraft, military aircraft, helicopters, and simulation systems.[43]

In October 2012, a joint development deal between Bombardier Aerospace and a government-lead South Korean consortium was revealed, to develop a 90-seater turboprop regional airliner, targeting a 2019 launch date. The consortium would include Korea Aerospace Industries and Korean Air Lines.[44]

Incidents and accidents[edit]

Korean Air had many fatal accidents between 1970 and 1999, during which time it wrote off 16 aircraft in serious incidents and accidents with the loss of 700 lives. On 1 Sep 1983, Korean Air Lines Flight 007, carrying 269 people, including a sitting U.S. Congressman, Larry McDonald, was shot down by the Soviets west of Sakhalin Island. The last fatal passenger incident was the Korean Air Flight 801 crash in 1997, which killed 228 people. The last crew fatality was Korean Air Cargo Flight 8509 in December 1999. Since the last fatality in 1999, safety has improved.[45]

Chaebol and Nepotism[edit]

Korean Air has been one of the examples of Korean Chaebol system, which is the corporate conglomerate, established with government's support, overreaching diverse branches of industry. Since Korean Air was founded as the Korean National Airlines in 1946 and privatized in 1969, the airline had been virtually the only one commercial airline company until Asiana Airlines was established in 1988. The process of privatization of Korean Airline in 1969 was supported by Park Chung-hee, the military general-president who seized power through a military coup d'état, and the monopoly of the airline was secured for two decades. After widening the Chaebol branches, the subsidiary corporations of Korean Air include marine and overland transportation business, hotel, real estate among others, and the previous branches included heavy industry, passenger transportation, construction, among stockbroking business.

The nature of the Korean Chaebol system involves with nepotism, and a series of incidents of Korean Air in 2000s have "revealed an ugly side of the culture within chaebols, South Korean’s giant family-run conglomerates".[46] Cho Hyun-Ah (Heather Cho), the daughter of the chairman Cho Yang-Ho, resigned from some of her duties in late 2014 after she ordered a Korean Air jet to return to the gate to allow a flight attendant to be removed from the plane. The attendant had served Cho nuts in a bag instead of on a plate. Family members at the firms are often more powerful than senior company executives. The Dong-A Ilbo newspaper said in an editorial that Cho’s actions exemplify the “sense of privilege” that chaebol families lord over other workers.

See also[edit]

References[edit]

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  2. ^ Tatiana Rokou (December 13, 2012). "Seoul voted "Best International Meetings Destination" for 2012". 
  3. ^ a b c "Directory: World Airlines". Flight International. April 3, 2007. p. 102. 
  4. ^ Korean Air Lines Co., Ltd. History. Fundinguniverse.com.
  5. ^ "World Airline Directory." Flight International. 16 May 1981. 1444.
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  8. ^ "Navoi Cargo Terminal opens in Uzbekistan; Korean Air to expand cargo network". ATW Online. August 16, 2010. Retrieved August 16, 2010. 
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  13. ^ "Company Info / Contact Info." Korean Air. Retrieved 30 August 2011. "Europe Headquarters 66/68 Piccadilly, London, W1J 0HJ, U.K"
  14. ^ "Aperçu / Info de Contact." Korean Air. Retrieved 30 August 2011. "Sièges en Europe 9 boulevard de la Madeleine 75001 Paris France"
  15. ^ "Überblick / Kontakt Info." Korean Air. Retrieved 30 August 2011. "Niderlassung in Deutschland An der Welle 4, 60322 Frankfurt am Main"
  16. ^ "Company Info / Contact Info." Korean Air. Retrieved 30 August 2011. "CIS Headquarters Bolshoy Gnezdnykovsky Pereulok D1/2, Moscow, Russia" Address in Russian: "Большой Гнездниковский переулок 1/2 Москва Россия"
  17. ^ "Company Info / Contact Info." Korean Air. Retrieved 30 August 2011. "Southeast Asia Headquarters 20 Raffles Place Ocean Tower #26-01 Singapore 048620" - Address in Chinese: "東南亞地域本部 莱佛士坊20号 海洋大楼26楼01/05号 新加坡048620"
  18. ^ "Company Info / Contact Info." Korean Air. Retrieved 30 August 2011. "Japan Headquarters Tokyo Korean Air Building, 3-4-15, Shiba Minato-ku Tokyo 105-0014" Address in Japanese: "日本地域本部 〒105-0014 東京都港区芝3-4-15 東京KALビル"
  19. ^ "公司资料 / 联系信息." Korean Air. Retrieved 30 August 2011. "China Headquarters Unit 1, 9th Floor, Hyundai Motor Tower No 38, Xiao Yun Road, Chao Yang District, Beijing, China" - Address in Chinese: "中国总部 北京市朝阳区霄云路38号现代汽车大厦"
  20. ^ "Company Info / Contact Info." Korean Air. Retrieved 30 August 2011. "Hong Kong Sales Office 11/F South Seas Center, Tower 2, 75 Mody Road T.S.T. East, Kowloon Hong Kong" - Address in Chinese: "香港支店 香港, 九龍, 尖沙咀東部,麼地道75號, 南洋中心第二座11樓"
  21. ^ "Why Nearly Half of Asiana Passengers Were Chinese." The Wall Street Journal. July 7, 2013. Retrieved on July 19, 2013.
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  30. ^ Replaced by Boeing 747-8 and Boeing 777-300ER
  31. ^ Replacing Boeing 747-400
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  37. ^ "Korean Air introduces premium seats" (in Korean). 
  38. ^ "Absolut Celestial Bar on Korean Air A380 aircraft". Contrast Magazine. Retrieved August 8, 2011. 
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  42. ^ Carrier moonlights in aerospace. Los Angeles Times. (18 February 2007).
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  44. ^ Choi Kyong-Ae (October 8, 2012). "South Korea Consortium in Talks With Bombardier About Developing Passenger Plane". Wall Street Journal. Retrieved October 10, 2012. 
  45. ^ Kirk, Don (March 26, 2002). "New Standards Mean Korean Air Is Coming Off Many 'Shun' Lists". The New York Times. Retrieved September 23, 2009. 
  46. ^ "Nepotism in a Nutshell." The Atlantic. DEC 9 2014,. the Atlantic.

External links[edit]