Korean air announces network changes including a pull-back from Brazil

by Payload Asia

Korean Air has announced a network realignment in response to what it says is competition in the global aviation market. Commencing December 2016, Korean Air will introduce direct flights to New Delhi, the capital and commercial centre of India.

New Delhi is a commercial focus for many Korean and global companies including; Samsung Electronics, LG Electronics, Hyundai Motor, Doosan Heavy Industry, GS Engineering & Construction, Posco, IBM, GE, HP, Google and Yahoo. In addition to corporate travel, New Delhi is currently in high demand as a tourism destination, with many cultural attractions including the Gandhi Memorial Museum and India Gate.

Korean Air is also considering operating a route to Iran in the future. Following the lifting of economic sanctions, Iran is emerging as a world magnet for investment and an important global hub.

In March 2016, Korean Air was granted permission to operate four flights weekly between Incheon and Tehran. Korean Air will decide the timing of the launch of its route to Teheran following the completion of a market conditions and financial trade environment study.

Korean Air will also reduce the frequency or suspend selected routes which are showing deficits.

From the last week of September, and after the Rio Olympic Games, Korean Air will suspend its three times a week flight between Seoul Incheon-São Paulo Guarulhos via Los Angeles Int’l service. The suspension of the route is due to low demand following the economic downturn in Brazil. According to local Korean media reports the route generates KRW25 billion (USD21.5 million) in annual losses. As it stands, Korean Air Cargo will still serve South America through its maindeck services to Campinas Viracopos, Lima Int’l, and Santiago de Chile Int’l.

In a bid to lessen the impact of its pull-out, Korean Air said it will strengthen its cooperation with US carriers flying to Brazil, adding that it will study the feasibility of resuming the flights depending on changes in market conditions.

Korean Air is also reducing the frequency of flights between Incheon and Jakarta from ten to seven flights weekly from September. The reduction is due to low demand. “Through constant development of new routes and the reduction of flights with low demand, Korean Air will maximise its profitability to ensure sustainability and competitiveness,” the carrier said.