Korean Air Lines
#2369
Rank
$6.4B
Marketcap
South Korea
Country
Mr. Won-Tae Cho (CEO & Exec. Director)
Mr. Kee-Hong Woo (Pres & Exec. Director)
Mr. Soo-Keun Lee (Chief Safety & Operation Officer and Exec. Director)
Summary
History
Founding
In 1962, government of the Republic of Korea acquired Korean National Airlines, which was founded in 1946, and changed its name to Korean Air Lines to become a state-owned airline. On 1 March 1969, the Hanjin Group acquired the state-owned airline and it is the beginning of Korean Air. Long-haul trans-pacific freight operations were introduced on April 26, 1971, followed by passenger services to Los Angeles International Airport on April 19, 1972.
Expansion
Korean Air operated international flights to destinations such as Hong Kong, Japan, Taiwan, and Los Angeles with Boeing 707s until the introduction of the Boeing 747 in 1973. In that year, the airline introduced Boeing 747s on its trans-Pacific routes and started a European service to Paris, France using the 707 and then McDonnell Douglas DC-10. In 1975, the airline became one of the earliest Asian airlines to operate Airbus aircraft with the purchase of three Airbus A300s, which were put into immediate service on Asian routes. In 1981, Korean Air opened own cargo terminal at Los Angeles International Airport. Since South Korean aircraft were prohibited from flying in the airspace of North Korea and the Soviet Union at the time, the European routes had to be designed eastbound from South Korea, such as Seoul ~ Anchorage ~ Paris.
Change to 'Korean Air'
A blue-top, silver and redesigned livery with a new corporate "Korean Air" logo featuring a stylized Taegeuk design was introduced on March 1, 1984, and the airline's name changed to Korean Air from Korean Air Lines. This livery was introduced on its MD-80s and Boeing 747-300s. It was designed in cooperation between Korean Air and Boeing. In the 1990s, Korean Air became the first airline to use the new McDonnell Douglas 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. In the 1984, Korean Air's head office was in the KAL Building on Namdaemunno, Jung-gu, Seoul.
Checkered safety culture and record
Korean Air was once notorious for its abysmal safety record and high rate of fatal crashes. In 1999, Korea's President Kim Dae-jung described the airline's safety record as "an embarrassment to the nation" and chose Korean Air's smaller rival, Asiana, for a flight to the United States.Between 1970 and 1999, Korean Air wrote off 16 aircraft due to serious incidents and accidents with the loss of over 700 lives. In the case of Korean Air Flight 801, the National Transportation Safety Board unanimously concluded that the airline's inadequate pilot training contributed to the pilot error that caused the fatal crash.In 1999, Delta Air Lines suspended its code-sharing relationship with Korean Air explicitly citing its poor safety record following the fatal crash of Korean Air Cargo Flight 6316. It marked the first time safety was explicitly cited as the reason for stopping a major code-sharing alliance by an airline. Other partners including Air Canada and Air France followed suit.
In 2001, the Federal Aviation Administration downgraded South Korea's aviation safety rating and blocked South Korean carriers from expanding into the United States after the country and its carriers failed to improve sufficiently following a warning the previous year. The move was driven by the country's lax oversight of its carriers including Korean Air.
The rating has since been restored as the airline invested billions of dollars to improve safety, upgrade its fleet, install new technology and overhaul its corporate culture including hiring consultants from Boeing and Delta Air Lines. In 2002, the New York Times noted that Korean Air had been removed from many "shun lists".
Early 21st century
On 23 June 2000, along with Aeroméxico, Air France and Delta Air Lines, Korean Air founded world's major airline alliance, SkyTeam and SkyTeam Cargo, founded on 28 September 2000.On June 5, 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 offered cheaper fares and less stringent security procedures compared to air travel. Jin Air started scheduled passenger service on July 17, 2008. Korean Air announced that some of its 737s and A300s would be given to Jin Air.
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.
In August 2010, Hanjin Group, the parent of KAL, opened a new cargo terminal at Navoi in Uzbekistan, which will become a cargo hub with regular Incheon-Navoi-Milan flights.In 2013, Korean Air acquired a 44% stake in Czech Airlines. It sold the stake in October 2017. On May 1, 2018, the airline launched a joint venture partnership with Delta Air Lines.In 2019, Korean Air began playing a safety video with the K-pop group SuperM. It featured the song "Let's go everywhere", which was to be released as a single. The airline also featured the group on a livery sported by a Boeing 777-300ER, with registration HL8010.
Nut rage incident
Cho Hyun-Ah, also known as "Heather Cho", is the daughter of then-chairman Cho Yang-ho. She 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 aircraft. The attendant had served Cho nuts in a bag instead of on a plate. As a result of further fallout, Cho Hyun-Ah was later arrested by Korean authorities for violating South Korea's aviation safety laws.
Merger of Asiana Airlines
In November 2020 during the COVID-19 pandemic, the South Korean Government officially announced that Korean Air will acquire Asiana Airlines. The Ministry of Land, Infrastructure and Transport of the Republic of Korea will integrate subsidiaries Air Busan, Air Seoul and Jin Air to form a combined low-cost carrier which will focus on regional airports in Korea.In March 2021, KAL announced the merger with Asiana Airlines will be delayed as foreign authorities have not approved the deal. As of 2022, the deal has not been completed as essential countries including China, Japan, and the United States have not given their approval.
Mission
Vision
Key Team
Nam-Il Park (Managing VP of Corp. Communications)
Mr. Kwang Sa Lee (Exec. VP of Joint Venture Project)
Yong Soon Park (Sr. VP of International Affairs and Alliance)
Mr. Kyung Ho Choi (Exec. VP of Cargo Bus. Division)
Hwa Sok Seo (Sr. Managing Director)
Tai Soo Suk (Deputy Chief Exec. Officer)
Mr. Kyung-Hwan Chang (Exec. VP of Corp. Strategy & Planning Division)
Recognition and Awards
References
Mr. Won-Tae Cho (CEO & Exec. Director)
Mr. Kee-Hong Woo (Pres & Exec. Director)
Mr. Soo-Keun Lee (Chief Safety & Operation Officer and Exec. Director)