KE™/OZ* | Korea-Based Carriers: Korean Air/Asiana

[kjoey]

ANA and Asiana Commence Cabin Crew Exchange


(JCN Newswire) - At a press conference held in Seoul this morning, ANA and Asiana announced the start of a cabin crew exchange from October 28 this year on the Tokyo Haneda-Seoul Gimpo route, as part of their strategic alliance to strengthen ties between the two Star Alliance member carriers.

Under the arrangement, one ANA cabin attendant will be assigned to a daily Asiana operated Tokyo-Seoul return flight, and vice-versa, to ensure that the needs of customers from Japan and Korea are met in their own language.

ANA and Asiana will also take the opportunity to study each other's inflight service training methods to further improve the experience of customers while onboard.

[kjoey]

ASIANA AIRLINES and ANA to enter Equity Partnership


ASIANA AIRLINES and ANA (All Nippon Airways) announced a cross-shareholding agreement as part of their strategic alliance to strengthen bilateral ties across the board.

The scope and level of cooperation was agreed by a specially commissioned task force team, following months of preparation that resulted from the signing of a memorandum of understanding by the CEOs of both companies on December 5, 2006.

Speaking at the press conference, ASIANA President Mr. Joo-an Kang said, “We are delighted to be here today to reveal the next step in our relationship with fellow Star Alliance partner, ANA. What we have announced today will bolster our respective route networks and create synergies for improved profitability and greater customer satisfaction. And the mutual holding of shares in each other’s company is a symbol of our commitment to work ever more closely together to the benefit of our passengers.”

ANA President and CEO, Mr. Mineo Yamamoto, who with Mr. Kang, signed the agreement, added, “ASIANA has been a valued partner of ANA since 1990, and we share similar ideals, histories and service ethos. It is our sincere wish that this new stage in our partnership will serve the needs of customers travelling between both nations and, while bringing commercial advantages to ASIANA and ANA, further the friendly ties between the people of Korea and Japan.”

Collaboration will extend to the following areas:

Cross-shareholding
Each company will hold a US$12,000,000 stake in the other.

Code-sharing
One of the first decisions of the task force team was to implement an extension of the existing ASIANA-ANA code-sharing agreement to all 18 Korea-Japan routes operated by both companies – 154 flights per week – in February this year. In a further move, from July 1st this year, ANA’s international flights between Narita and Honolulu will begin carrying the ASIANA flight code. The companies first began code-sharing on passenger flights between Seoul and Japan in 2000, and also on all freighter flights between the two countries in March 2005.

Sales and Marketing
The two companies will begin preparations for a future ‘triangle service’ between Seoul Gimpo, Tokyo Haneda and Shangahi Honqiao, to provide added convenience to passengers and contribute to a more active exchange between the three countries. To further increase revenue, ASIANA and ANA also will fortify joint corporate sales efforts and share mid and long term corporate goals.

Operations and Airport Services
Cooperation at the 19 overseas airports served by both ASIANA and ANA to explore avenues to reduce costs and improve airport services. The airlines will also share information on spare parts at major overseas gateways, and create a system to support each other in case operational irregularities or emergencies should arise.

Purchasing
Joint purchasing of fuel in designated regions, and exchange of related information.

In-flight Services
Joint cabin crew training and co-development of in-flight materials and entertainment programs in both Korean and Japanese.

Human Resources
Exchange of personnel and joint training programs where deemed mutually beneficial.

[kjoey]

JAL & Korean Air Code Share on Haneda - Gimpo Route


Tokyo, Japan, Oct 11, 2007 - (JCN Newswire) - Japan Airlines (JAL) and Korean Air Lines (KAL) agreed today to expand their code share operations to include the airlines' flights operating between Haneda airport, Tokyo and Gimpo airport in Seoul. The agreement will come into effect on October 28, 2007, and is subject to government approval.

Both JAL and Korean Air operate their own twice daily services between the two airports. The code share agreement will enable them to place their airline designator code on each others flights. Tickets for the new code share flights go on sale from October 17, 2007.

At present, JAL including Korean Air Lines code shares serves South Korea on 14 routes with a total of 214 round-trip flights per week, linking Seoul, Busan and Jeju Island to 8 cities Japan. With the addition of the two new daily code share flights to Gimpo, JAL will offer a total of 228 round-trip flights.

JAL and Korean Air Lines first started code sharing in August 1 2004 with flights between Seoul and the regional Japanese cities of Komatsu, Niigata and Sapporo.

http://www.jal.com/en/press/0001143/1143.html

[kjoey]

Aeroflot, Air France-KLM, Korean Air looking to buy CSA


PRAGUE (Thomson Financial) - Aeroflot, Air France-KLM, Korean Air and several Russian financial investors have been in talks with Czech airline CSA as they are considering bidding for the state-run air carrier in its planned privatisation, a source close to the preparations of the sale told Thomson Financial News.

'CSA has been talking to Aeroflot, which is part of the Sky Team alliance with CSA, and a number of Russian financial investors,' one source said.

'Air France-KLM and Korean Air have also expressed interest and have been in contact with CSA over the possibility of an acquisition,' the source added.

CSA board chairman Radomir Lasak denied in a statement this afternoon that the company would talk to investors about the possibilities and the way of privatising the airlines, adding that the sale is a matter of the owner, not the management of the company.

The Czech cabinet plans to sell the loss-making air carrier as soon as it at least breaks even, which is expected in 2008, and should receive proposals from the transport minister and the finance minister for the method of the sale by March.

Russian companies are particularly interested in the Czech company as an acquisition in the central European region would open their way to the West, the source said, adding that CSA's biggest asset is its dense worldwide route network.

When contacted by Thomson Financial News, Aeroflot declined to comment on possible interest in CSA. Air France-KLM denied it was looking to buy the Czech air carrier.

Sources close to the sale preparations say that CSA management is also considering floating a minority stake of the airline on the Prague stock exchange and later selling the controlling stake to strategic investors at a premium.

'This is the CSA management idea... they probably think that this way they can raise more money, but the government isn't likely to agree with such a scenario as this kind of an IPO could be likely abused by speculators,' the source close to the sale said.

According to sources from the airline, CSA equity value was estimated at 5-6 bln crowns in 2005 and fell to 3 bln crowns last year.

CSA declined to comment on potential bidders for the company and said its 'indicative value' has been rising due to the 'curative strategy' of its current management.

http://uk.biz.yahoo.com/23102007/323...a-sources.html

[kjoey]

Asiana Airlines to add two Korean destinations to Beijing


BEIJING, Oct. 20 (Xinhua) -- Asiana Airlines from the Republic of Korea will launch flights from Beijing to Gwangju and Keyinwikion October 30 and November 7, respectively. By then, Asiana will operate four routes from Beijing to ROK.

With the flight dubbed OZ342, Airbus A321 aircraft will take off from Beijing every Tuesday and Friday at 10:55 a.m. and reach Gwangju at 14:00. The returning flight OZ341 will be back at Beijing at 16:25. With the flight dubbed OZ373, A321s will take off from Beijing every Wednesday and Saturday at 10:55 a.m. and reach Keyinwiki at 13:50.

This year marked the 15th anniversary of the establishment of diplomatic relations between China and ROK.

ROK is now China's biggest inbound tourism market and the number of Chinese tourists to Korea ranked the second. Last year, some 900,000 Chinese tourists visited ROK.

[kjoey]

Airlines Vie for Quality In-Flight Meals

An Asiana Airlines flight attendant and chefs from Toh Lim, La Cucina, and Din Tai Fung show in-flight meals made by the restaurants, Thursday. The carrier will provide the meals to first and business class passengers.
Courtesy of Asiana Airlines

By Kim Rahn
Staff Reporter

In-flight meals are evolving.

Airlines around the world are competing to develop distinctive menus that satisfy both passengers' tastes and the gourmet trend of healthy food.

Asiana Airlines will join hands with Toh Lim, a Chinese restaurant at Lotte Hotel in central Seoul, within the month.

It is the first time for a Korean carrier to have in-flight meals made by an outside restaurant.

The restaurant's highest quality course comprised of seven to eight dishes, from appetizer to main and desert, will be served in first class on flights to Los Angeles, and business class starting next month.

The airline also plans to adopt a course menu including lobster and steak from La Cucina, a luxury Italian restaurant in central Seoul, starting this month for first class, and next month for business class.

Since September, it has already provided first class passengers on the Incheon-Los Angeles route with dimsum from Din Tai Fung, a Taiwanese restaurant selected as one of the world's top 10 restaurants by the New York Times.

"After reviewing passengers' reaction, we plan to expand the menus from the restaurants and the routes we provide the service to. We are considering cooperating with more restaurants,'' an Asiana official said.

Korean Air keeps developing Korean-style, healthy in-flight meals with organic ingredients.

It started providing homemade-style red ginseng tea to passengers in first and business classes on the Gimpo-Haneda route last month. Another kind of red ginseng drink is offered to economy class passengers.

The service will be expanded to the Gimpo-Hongquia route that is scheduled to launch this month.

The carrier's menus of "bibimbap'' (rice with assorted vegetable) and "bibim noodle'' (spicy cold noodle) have already gained popularity, winning international awards.

It plans to develop more Korean-style dishes. "We are upgrading in-flight meals, as meals with both good taste and nutrition are an essential factor for an airline to become a quality one,'' a Korean Air official said.

The carrier, which supplies in-flight meals to 40,000 people a day, plans to invest 3.5 billion won in expanding an in-flight meal factory in Busan and remodeling another factory in Incheon next year.

Cathay Pacific Airways has adopted Korean bibimbap on its in-flight menu for business class passengers on flights from Hong Kong to Korea in September. The service will be expanded to economy class.

Since August, the carrier also provides a new Chinese menu, which it developed with advice from famous Hong Kong cooking expert Annie Leong, to passengers in first and business class on flights departing from Hong Kong. More than 30 dishes, such as baked duck stuffed with glutinous-rice, are available.

rahnita@koreatimes.co.kr

[hkskyline]

The potential for Korea-based low cost carriers is not so much on improving connectivity with Southeast Asia, but rather the huge Chinese market that is within short-haul range. Beijing, Shanghai, and Tokyo are all within logical distances for the established short-haul model to make Seoul a potentially very competitive hub for low cost travel between the 3 countries. That is, assuming the regulatory approvals can be negotiated with the other sides.

[hkskyline]

Korean Air's budget carrier plans hit a snag

SEOUL, Nov 28, 2007 (AFP) - Plans by Korean Air to launch a low-cost international airline next year hit a snag Wednesday as authorities introduced strict guidelines on the booming budget carrier business.

South Korea's transportation ministry said it would enact new rules requiring all budget carriers to run domestic flights for at least two years before operating international flights.

The announcement came just two days after South Korea's biggest carrier Korean Air said it would launch a separate, low-cost international airline in May 2008 and turn it into Asia's biggest budget carrier by 2012.

The planned new carrier, Air Korea, will initially operate short-haul international routes to China, Japan, Thailand and Malaysia, Korean Air said.

The transportation ministry made it clear that the new gudelines would require Air Korea to fulfil the two-year mandatory service at home.

"There is no exception in applying the new guidelines to the budget carriers, already operating or to operate in the future," a ministry official handling air transport policy told AFP.

"Air Korea, as a separate unit, should abide by the rules."

Now operating in South Korea are two low-cost domestic carriers. One, Jeju Air, has also announced plans to expand internationally.

Korean Air said it would set up Air Korea as a separate unit with three Airbus A-300s and two Boeing 737s on paid-up capital of 20 billion won (21.5 million dollars).

Korean Air said it would concentrate on "upper-class business travel demands," with Air Korea focusing on travellers seeking shorter holiday trips.

Budget ticket prices would be set at between 75 percent and 80 percent of the parent company's prices, it said.

Discount carriers now make up 20 percent of the US and European air travel market and are expanding quickly in China and Southeast Asia.

[kjoey]

Originally Posted by hkskyline

Korean Air's budget carrier plans hit a snag

SEOUL, Nov 28, 2007 (AFP) - Plans by Korean Air to launch a low-cost international airline next year hit a snag Wednesday as authorities introduced strict guidelines on the booming budget carrier business.

South Korea's transportation ministry said it would enact new rules requiring all budget carriers to run domestic flights for at least two years before operating international flights.

The announcement came just two days after South Korea's biggest carrier Korean Air said it would launch a separate, low-cost international airline in May 2008 and turn it into Asia's biggest budget carrier by 2012.

The planned new carrier, Air Korea, will initially operate short-haul international routes to China, Japan, Thailand and Malaysia, Korean Air said.

The transportation ministry made it clear that the new gudelines would require Air Korea to fulfil the two-year mandatory service at home.

"There is no exception in applying the new guidelines to the budget carriers, already operating or to operate in the future," a ministry official handling air transport policy told AFP.

"Air Korea, as a separate unit, should abide by the rules."

Now operating in South Korea are two low-cost domestic carriers. One, Jeju Air, has also announced plans to expand internationally.

Korean Air said it would set up Air Korea as a separate unit with three Airbus A-300s and two Boeing 737s on paid-up capital of 20 billion won (21.5 million dollars).

Korean Air said it would concentrate on "upper-class business travel demands," with Air Korea focusing on travellers seeking shorter holiday trips.

Budget ticket prices would be set at between 75 percent and 80 percent of the parent company's prices, it said.

Discount carriers now make up 20 percent of the US and European air travel market and are expanding quickly in China and Southeast Asia.

I would think this would effect Incheon Tiger Airways as they were planning to operate domestic for about a year and start international operations to China and Japan from Incheon.

[ddes]

Well at least Incheon Tiger was planning to run domestic for 1 year, now it's just 1 extra year...

Air Korea wanted to begin international flights immediately..

Let the cannibalization begin.

[hkskyline]

Originally Posted by ddarkdom

Well at least Incheon Tiger was planning to run domestic for 1 year, now it's just 1 extra year...

Air Korea wanted to begin international flights immediately..

Let the cannibalization begin.

The point is not as much how long carriers need to run domestic flights before going international, but rather the government's attitude over increased competition in the aviation sector. Who knows if that sour mood will translate into more regulations a few years down the road when the airlines can qualify for the expansion.

[kjoey]

Originally Posted by hkskyline

The point is not as much how long carriers need to run domestic flights before going international, but rather the government's attitude over increased competition in the aviation sector. Who knows if that sour mood will translate into more regulations a few years down the road when the airlines can qualify for the expansion.

I think they applied this regulations for new companies to establish themselves as an safe airline domestic first rather than competition before going international. If you operate safely for 2 years, you're qualified to apply for international flight. If the government sole goal was to reduce competition, I wouldn't think they would have rejected Korean Air as it would have driven other airlines to think twice about operating international as a latecomer in the budget airline race. I think they are 3 or 4 new airlines that are to operate in Korea in the coming years.

[hkskyline]

5 years is quite good compared to what North American carriers are doing these days.

[kjoey]

Asiana to add 20 jets by 2012, expand routes


Asiana Airlines Incorporated, Korea’s second-largest carrier, plans to add 20 more aircraft by 2012 as it expands routes to Europe and North America.
The Seoul-based airline’s total fleet will rise to 85 by 2012, spokesman Cho Yong-moo said yesterday. The carrier has not yet decided if it will buy or lease the planes, he said.

Asiana will begin three weekly flights between Seoul and Paris from March. It also plans to increase operations to New York and Los Angeles. Asiana and its bigger domestic rival, Korean Air Lines Company, are adding routes and planes as growth in Asia’s fourth-biggest economy spurs overseas travel demand.

“The competition on short-haul routes is getting fiercer,” said Song Eun-bin, an analyst at Samsung Securities Company in Seoul. “Long-haul operations will provide higher profits, so I think Asiana is going in the right direction.” Song has a “buy” rating on the company.

The carrier is considering Boeing’s 787 and 747-8 as well as Airbus SAS’s A380 and A350.

Bloomberg

[kjoey]

KAL, China Southern Exchange Attendants


By Bae Ji-sook
Staff Reporter

Korean Air and China Southern Airlines have signed a pact to exchange flight attendants on three routes linking Incheon and three regions in China ― Beijing, Guangzhou and Changsha.

Forty flight attendants will work on the routes for the next six months starting from Tuesday.

Every flight will have two such cabin crews, who all participated in an additional flight safety training program provided by Korean Air and approved by the Ministry of Construction and Transportation. They will provide service in Korean and Chinese as well as in English. This is the first time for such an exchange to be made.

"This will be a good opportunity for the two airline companies to understand each other's service before big events such as the Beijing Olympics in 2008 and Shanghai Expo in 2010, where we will see an increase in the number of passengers,'' a Korean Air spokesman said.

The two companies will seek further cooperation through joint operation and marketing.

bjs@koreatimes.co.kr

[kjoey]

Korean Air To Raise Fuel Surcharge


December 20, 2007

South Korea will allow Korean Air to more than double its fuel surcharge for international flights amid soaring oil prices, the transportation ministry said on Thursday.

The maximum fuel surcharge that South Korea's biggest airline can impose on long-distance flights will rise to USD$140 starting in January, from the current USD$52.

"The changes come as we believe the high oil prices will continue for a while," the ministry said in a statement.

Kim Sang-soo, an official at the transportation ministry, said for January, Korean Air is likely to impose a surcharge of USD$104 based on the ministry's calculation of the airline's fuel costs.

The higher maximum surcharge applies only to Korean Air because it had requested an increase, said Kim. Asiana Airlines has not yet applied to raise the maximum surcharge.

Oil prices have been rising inversely to the dollar over the past few months, hitting a record USD$99.29 in November, amid a fever of speculative trading and concerns over shrinking crude supplies in the United States in the winter season.

(Reuters)

[kjoey]

S Korean Budget Carrier Jeju Air To Buy Five Boeing 737s -AFP


SEOUL (AFP)--South Korean budget domestic carrier Jeju Air said it would sign a contract with Boeing Co. (BA) Friday to buy five 737-800 planes for $363 million, as part of plans to expand internationally.

The US aircraft maker will deliver its 189-seat planes from 2011, said Yang Sung-Jin, spokesman for the airline based on the southern resort island.

Jeju Air will also lease two Boeing 737-800s in April next year and eight more by 2013, he said, adding the deal would help the domestic carrier expand internationally.

Jeju Air, which was launched in 2006, currently operates four Canada-made Bombardier Q400 turboprop planes for domestic operations only.

It is one of the country's two budget domestic carriers along with Cheongju- based Hansung Airlines.

Top carrier Korean Air in June announced plans for a budget unit within three years. And Incheon city forged a joint venture with Singapore's Tiger Airways last month to jump into Asia's booming budget aviation market.

Discount carriers now make up 20% of the US and European air travel market and are expanding quickly in China and Southeast Asia.

[Skybean]

Korean Air CM with Han Hyo-Ju

[Mussoda]

Nice Thread. Thank you for this.

[JM88]

The new seats look nice! I'm taking Korean Air's new 777-300ER this July from JFK-ICN when I go to the Philippines! Can't wait.

Are there pictures of the new economy class???