"If the Main Business Fails, at Least Side Jobs" Airlines Seeking Self-Help Measures

Active Search for Self-Help Measures Such as Air Cargo Business and Sightseeing Flights

Asiana Airlines announced that it will strengthen its cargo supply capacity by modifying A350 and B777 passenger aircraft, as airport officials loaded air cargo on the afternoon of the 24th. Photo by Airport Press Photographers Group

[Asia Economy Reporter Yu Je-hoon] National airlines, struggling with their core business of air transportation due to the novel coronavirus disease (COVID-19), are overcoming the tough times by focusing on 'side businesses.' Each airline is putting effort into areas they had not previously ventured into, such as sightseeing flights and cargo transportation.

According to Incheon International Airport Corporation on the 15th, the air cargo volume at Incheon Airport in the third quarter reached a combined total of 714,470 tons for departures and arrivals. This figure represents an increase of about 3.7% compared to the same period last year. This contrasts sharply with the more than 95% decline in international passenger transport, which is the airlines' main business.

This contrasting result is interpreted as being due to the recent cargo boom caused by COVID-19. Korean Air and Asiana Airlines have also removed seats from some of their passenger aircraft and converted them into cargo planes for transportation. This strategy aims to enhance profitability by repurposing passenger aircraft, which have seen reduced utilization due to COVID-19, into cargo planes. A representative from a national airline stated, "Cargo transport using existing passenger aircraft has limitations in loading capacity and did not exceed the level of covering fixed costs," adding, "When converted, about 10 tons of additional transport is possible, which will also help profitability."

Recently, low-cost carriers (LCCs) have also entered the air cargo business. This is an unusual move for LCCs, which typically operate on a 'low margin, high volume' business model in passenger transport. Jin Air, the only LCC that owns medium to large aircraft (B777-200ER), plans to remove seats from the cabin and increase cargo loading capacity by 60% compared to before, officially starting cargo operations with dedicated cargo aircraft. This will be the first time an LCC owns a dedicated cargo plane.

Additionally, T'way Air plans to deploy two of its 27 B737-800 aircraft for cargo operations by loading cargo onto seats. Unlike the method of removing seats for deployment, the company explains that this approach allows flexible conversion back to passenger use depending on market conditions.

Recently, several airlines have also been attempting 'sightseeing flights.' Sightseeing flights refer to circular flights without a destination under current law. After selling out the first sightseeing flight product using its super-large passenger aircraft A380, Asiana Airlines is currently selling a second product. Alongside this, Jeju Air will attempt domestic sightseeing flights later this month using B737-800 aircraft equipped with New Class (business class) seats, and Air Busan will deploy its latest aircraft, the A321neo LR.

An industry insider said, "Sightseeing flights seem to have been launched more with the intention of maintaining pilots' qualifications (requiring takeoff and landing at least three times every 90 days) and promotional effects rather than generating actual profits," adding, "So far, public response has not been bad."

This content was produced with the assistance of AI translation services.