How business, doctors and journalists prey on your food anxieties I

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VO POSTAGE VEC'cSSARV' IF MA[LED IN THE UNITED STATES BUSINESS REPLY NTaIL FIRSTCL .ASS>7AIL PERSllTVD .Sd94 DESNDIhES,IA POSTAGE wLLL BE P .AID BY ADDRESSEE Forbes PO BOX 10734 DES MOINES IA 503i7 .0733 20466i3375 http://legacy.library.ucsf.edu/tid/agf97d00/pdf
A D V E R T I S E M E N T KORE A N AIR The World's Fourteenth-Laraest Airline orean Air (KAL), with a fleet of 99 wide-bodied aircraft, last vear carried 18 .9 million passengers <strong>and</strong> 764,000 tons of cargo at home <strong>and</strong> abroad, becoming the .vorld's 14th-largest airline . It is aiming to be among the world's top ten airlines in the near future . This year, with nine new aircraft, KAL <strong>and</strong>cipates transporting 20 milllon pasvengers <strong>and</strong> 784,000 tons .of cargo, with expected revenues of 3 ttillion won (roughlc .b4 billion) . KAL rcported a $46 .78 million net profit on total revenues of $3 .88 'oillion last year, up an impressive 221 % over its 1993 result . Now serving 72 cities in 28 countries including the U .S ., Japan, Soucheast Asia, Europe <strong>and</strong> the Middle East, this year K4IL plans to add passenger service from Seoul to Brussels, Nadi in Fiji, Tel Aviv <strong>and</strong> Mexico City, as well as new freight flights m San Francisco, Chicago, Atlanra, Beijing <strong>and</strong> Amsterdam . The Korean national flag carrier's overall growth has been phenomenal . In 1969, when Hanjin Group Chairman Cho Choone-Hoon took over the ailing stateowned Korean National Airlines, renaming it KAL, it only had one jet -a DG9-<strong>and</strong> seven propeller aircaft, <strong>and</strong> flew only to Japan <strong>and</strong> Hong Kong . Twenty-six years later, on March 24, 1995, IiA1's 100th aircraft, a B747d00, l<strong>and</strong>ed at Seoul's Kimpo Airport, ushering KAlL into the ranks of the mega-carriers . Hanjin is South Koreas serenth-largest group . It operates an integrated l<strong>and</strong>/sealair transportation network including KAL, an oceangoing conrainer fleet <strong>and</strong> the largest trucking service in the country. It also has subsidiaries in construction, telecommunications, banking, insurance <strong>and</strong> securities . KAL President <strong>and</strong> CEO Cho Yang-Ho, 46, who is the eldescson of Hanjids chairman, says KAL aims eventually to extend its routes across the American continent <strong>and</strong> then across the Atlantic to Europe, thereby making its long-cherished dream of offering around-the-world service come true . Cho attributes KAL's success to hard "3 J I http://legacy.library.ucsf.edu/tid/agf97d00/pdf work : "Koreans are very hard-wor'xing people, so we work harder than ocher airlines, <strong>and</strong> we always prepare for the worst since we are a private company. We don't expect any government subsidies in the event of a downtum . unlike some orher countries' airlines . We keep costs down <strong>and</strong> our product good, <strong>and</strong> in the event of a downturn, we're readv. We are ready to survive ." He has also had the foresight to invest heavily in KAL's cargo division over the years . KAL's cargo terminal at Los Angeles International Airpott is the largest cargo terminal on North Americas West Coast, while KAI- owns <strong>and</strong> operates huge rargo terminals at New York's JFK Airport <strong>and</strong> Tokyo's Narita Airport . KAL is investing $130 million to build a massive air freight terminal at Beijing International Airport in a joint venture with China's Civil Aviation Administration . Last vear, KA1's cargo revenue rose 16% <strong>and</strong> contributed one-third of the airline's total revenues of,53_88 billion . It is now the third-largest in the world in terms of international freight mn-kilometers. At rhe moment, KAL sees China as a market with huge potential . KAI's four routes are very-successful, with high load factors to Beijing <strong>and</strong> Qindao due to increasing South Korean <strong>business</strong> investments in China . "In the future, because of high growmh in China's economy <strong>and</strong> its big population, we expect a good outbound market from China," Cho savs . China just gave KAL permission to fly through its airspace to Moscow <strong>and</strong> Rome, enabling KAL to cut three hours off the trip <strong>and</strong> save millions of dol- lars annually in fuel alone . KAL is negotiating with major airlines in Europe, Asia <strong>and</strong> Norut Artterica with new deals in mind, <strong>and</strong> is seeking a quality alliance with a big U .S . operator. Last vear KAL carried 6 .4 million international passengers <strong>and</strong> 12 .6 million domestic ones, while competitor Asiana h<strong>and</strong>led 1 .5 million intemational <strong>and</strong> 4 .5 million domestic passengers . KAL is phasing out old aircraft, which will be replaced by new B747-400s, B777s <strong>and</strong> Air'ous A330s, reducing operational costs through more efficient fuel performance <strong>and</strong> lower maintenance costs . KALs fleet today includes 37 3747s- 17 of the 400 series jets <strong>and</strong> 11 freightersfive MID-11s, 31 Airbus A300s, nine b4D- 82s <strong>and</strong> 12 Fokker F-l0os . On order up to the vear 2000 are 13 B747-4DOs, four B777Bs, eight B777- stretches, seven Airbus 330s, two MD-82s <strong>and</strong> two Fokker-100s . . . u-it-h a young fleet, a high-quality product <strong>and</strong> an outbound tourist market that is the fastest-growing in rhe world, nor to mention the potential of the China market, KAL's future looks brighter than ever, 204667,2376 "We keep costs down <strong>and</strong> our product QOOdd in the event of a downtu"1, vfe're ready ."
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