On the Road to Expansion

Asiana Airline to add more routes to increase profit on occasion of 20th anniversary

Park Chan-bup, vice chairman for aviation business for the Kumho-Asiana Group, said a substantial progress has been made in talks between the aviation authorities of both Korea and China on opening the Gimpo-Shanghai air route and he expects a good news to come out of the talks very soon.
He told reporters on his way back from Copenhagen where he attended the 10th anniversary of the "Star Alliance"linking major airlines in the world.
President Roh Moo-hyun and Chinese Premier Wen Jiabao agreed to open a new shuttle air route between Korea and China in their meeting in Seoul last month. Since the Korean planes will be using the Hongchao Airport in Shanghai, the travel time to downtown Shanghai from the airport will be cut by an hour, he said.
The aviation expert said next year will be the Asiana Airlines'20th anniversary and we are preparing for the next take-off on the occasion. The airline plans to buy 8 new Airbus 330s and Boeing 777 and put them into service to improve passenger comfort.
He also revealed that the airline is working on a plan to conclude a tripartite alliance between airlines in Korea, Japan and China, recalling that Asiana has been able to be reborn through the Star Alliance, getting much more benefits than expected during the early stages of joining the alliance.
He said Asiana has been able to expand its routes through the alliance, boosting its image internationally, overcoming disadvantages as a late starter in the business. The alliance covered many countries in the world, Americas, Europe, Asia and Africa, making Asiana expand its air routes, despite difficult conditions brought on by such things as SARS epidemic, and the 9.11 terrorist attack.
Asiana saw its net profit soar to 130.6 billion won last year, ending the year in black for three years in a row. The company declared dividends for the first time since its launching some 20 years ago. During the first quarter this year, the airline netted 43.6 billion won in profit, up 160 percent year-on-year.
Vice Chairman Park took over the helm of the airline in 2001 and has been running the airline for 6 years as its CEO. Park quoted Charles Darwin's Origin of Seeds. "
Principles have to be upheld, but should change with environment,"which still holds truth even today.
For example, Park is known for his unwieldy nature that he has never yielded to the striking pilot union's unreasonable demands in 2005, although the airline was losing money. He led Asiana to join the Star Alliance in March, 2003, to cope with the changes in the airline industry around the world is also a good example of Park's principle that business has to change with changes in its environment.
Asiana plans to strengthen its cargo flight department this year, aiming at its revenue from cargo flights to record 1 trillion won. The vice chairman separated its cargo department from the business division to be independent from this year. What he aims at is to boost the value-added portion of its business in the cargo department and cut up a big chunk of Chinese air cargoes bound for Europe, which have been increasing year by year.
He said Asiana plans to fly to Paris from next year with plans to fly to Eastern Europe a and Canada in the near future.
Kumho-Asiana Group has set aside 2,091.7 billion won in new investments with the goal of achieving "a beautiful ascent"on the global market.
Kumho-Asiana Group under the helm of Chairman Park Sam-koo is putting more energy into maximizing the synergetic effects between Daewoo E&C, acquired by the group in its successful M&A bid, and the group's affiliates. The group plans to strengthen competitiveness of the group's growth engine industries - construction, airline, tire and petrochemicals - while expanding new investments into logistics and tourism/leisure industries perceived as futuristic industrial fields. The group said on Jan. 16 that it will earmark 2,091.7 billion won in R&D, education and IT system areas to enhance the group's continuous growth and competitive edge. The group's 2007 business plan calls for posting 21 trillion won in sales and 1.8 trillion won in operating profit.
During last year, the group made an aggressive overseas entry abroad as the group dedicated the Kumho-Asiana Plaza in Ho Chi Minh City and established a tire plant and a petrochemical plant in Nanjing, China. nw

An Asiana Airline's plane on a flight.
Vice Chairman Park Chan-bup in charge of the aviation business at the Kumho-Asiana Group.