KAL Eager to Evolve into Global Brand-Name Airliner

Rakes in Record 10 Tln Won in Sales

Korean Air, the nation's largest national flag carrier, is accelerating its bid to realize its goal of becoming a world-class carrier as it has placed an order to purchase two more Airbus A380s.
KAL said the measure will increase to 10 the number of Airbus' next-generation aircraft KAL will import from 2010 to 2014. The eight A380s KAL initially ordered will be delivered from 2010 through 2013 and the two additions will be delivered in May and June 2014.
KAL's decision to order two more A380s will be in line with its commitment to provide prestigious service to clients beyond their expectations, KAL officials said.
The Korean airliner now operates two A380s. The Airbus A380, a double-decked, wide-bodied, four-engine airliner manufactured by the European aircraft maker, is efficient and environmentally-friendly, as it can cut down on fuel use by 15 percent due to the use of parts made with light mixed materials, and reduces greenhouse gas emissions by 20 percent.
From 2010, KAL plans to put A380s on such long-haul routes as Seoul to Los Angeles, Seoul to New York and Seoul to Paris and enhance its standing as a global brand-name airliner by providing high-quality services.
Currently, only KAL and China Southern Airlines among the Asian airliners have ordered the next-generation aircraft, and the Korean national flag carrier is the sole one to order 10 or more A380s.

KAL's RECORD-HIGH SALES
Korean Air (KAL) has posted a record-high 10 trillion won in sales during 2008.
KAL reported on Feb. 3 that it posted 10.213 trillion won in sales in 2008, up 15.9 percent over 2007, but recorded a 99.3 billion won loss in operating income and a net loss of 1.958 trillion won.
It said the loss in net income for last year stemmed from the exchange loss related to foreign debts and its fuel costs due to a drop in the value of the Korean currency.
Despite the slumping economy, KAL said it aims at posting 10.3 trillion won in sales and about 600 billion won in operating income during 2009. It plans to set its investments at 870 billion won, a whopping 50 percent jump from 2008. The 2009 business plan was established based on the projection that West Texas Intermediate (WTI) will trade at $75 per barrels and the Korean currency exchange rate against the dollar will hover around 1,200 won.
To this end, KAL plans to focus on profit-oriented management as well as making aggressive inroads into foreign markets to attract a customer base from abroad.
The 2009 investment plan calls for the purchase of five new aircraft, including three Boeing 777-300ERs, constructing a cargo terminal in Tianjin, China and investing in manufacturing parts for Boeing's 787/A350 aircraft.
Now that Korea has become the recipient of the U.S. visa waiver program and the nation has signed an open-sky deal with Canada, KAL plans to continuously increase U.S.-bound flights and expand flight routes to Europe.
A KAL official said the nation's largest flag-carrier plans to secure growth engines by expanding facility investments and building a long-term growth foundation by making aggressive inroads into foreign markets. This year, which marks the 40th anniversary of its founding, will be the first year for elevating the airline to the ranks of world-class carriers. nw

(left) KAL Chairman Cho Yang-ho. A380s,(right) Airbus' next-generation aircraft Korean Air has purchased in a bid to make it a global brand-name airliner with KAL's first-class Kosmo Sleeper Seat (below).