Chairman Cho Won-tae: "Korean Air's Performance in the First Half of This Year Will Surpass Last Year's" (Comprehensive)

Interview with CNN... "Expecting Merger Approval with Asiana within the Year"

[Asia Economy Reporter Yoo Hyun-seok] "We expect better performance in the first half of this year compared to last year."

Cho Won-tae, Chairman of Korean Air, said in an interview with CNN on the 23rd, "Cargo demand remains high," and predicted strong performance this year. However, he explained that international flights have only recovered to about 40% of pre-COVID-19 levels. He stated, "We have restored aircraft supply mainly on long-haul routes to 40% of pre-COVID-19 levels," but added, "The recovery speed of routes to Japan and China is slow."

Regarding concerns about the disapproval of the merger between Korean Air and Asiana Airlines, he said, "We expect to receive approval for the Asiana Airlines merger by the end of the year." Chairman Cho emphasized that they learned many things through COVID-19. He explained, "During the COVID-19 crisis, we learned the importance of solving problems together through exchanging opinions with employees, such as operating passenger aircraft converted into cargo planes."

In an interview with the global aviation magazine Flight Global in Doha, Qatar, where he visited to attend the International Air Transport Association (IATA) annual general meeting the day before, Chairman Cho also stated, "We expect to receive approval for the Korean Air and Asiana Airlines merger from U.S. and European Union (EU) authorities by the end of the year at the latest."

He said, "We anticipated there would be issues in the U.S. and EU reviews," but explained, "We are now properly on track." He added, "Reviews are proceeding at a similar pace in other countries, so everything will be completed by the end of the year."

He also revealed that they are in talks with other airlines interested in operating Korean routes. He emphasized, "We are actively responding to the demands of U.S. and European competition authorities." It is reported that Korean Air is requesting other airlines to start service and expand operations on routes with high market share to ease monopoly after the Asiana Airlines merger.

Chairman Cho stated that the integrated low-cost carrier (LCC), formed by combining Korean Air’s subsidiary Jin Air and Asiana Airlines’ subsidiaries Air Busan and Air Seoul, will operate with Incheon International Airport as its hub. He mentioned, "The merged entity (integrated LCC) will operate under the Jin Air brand," and added, "Busan is a very important market and will be maintained as a second hub."

In an interview with CNBC, Chairman Cho also expressed confidence, saying, "The Korea Fair Trade Commission approved the merger after a one-year review, and I am confident that reviews in six other countries will go well," and predicted, "The merged airline will generate more profits in the future."

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