A PERFECT - Orient Aviation

The making ofa mega-carrierOnce an ailing state-ownedoperator, after 35 years inprivate hands Korean Air(KAL) has become one ofthe region’s giant carrierswith a globe-spanning network and bigambitions for the future.When the giant Hanjin transportationconglomerate took over management of whatwas then National Korean Airlines on March1, 1969, it was handed what amounted to anairline industry cripple.The carrier had sufferedchronic losses since beinglaunched by the governmentin 1962. It was lumberingunder liabilities equivalentto more than US$1 billiontoday. The fleet consisted ofjust one jet – a Douglas DC-9 – and seven ageing propeller-drivenDouglas DC-3s, DC-4s and Fokker F27sflying on six domestic andthree Korea-Japan routes.Renamed Korean Air Lines, the namewas changed again to its present KoreanAir in 1984 when the present distinctiveblue livery was introduced.In 1969, the newly privatised KAL startedits quest for profitability by acquiring modernjet aircraft, the B707, and launched newservices to Japan, Hong Kong and China.By 1973, the first of a growing numberof B747 jumbo jets had arrived. They pliedthe trans-Pacific route from Seoul to LosAngeles. At the same time, the B707s wereused to launch services to Paris.A year later, KAL joined Air France inwhat was an elite Airbus club of just twocarriers, ordering six A300B4s that wouldenter service in 1975.In the 1970s, KAL launched a growingnumber of international freighter services.A Korean Air Lines DC-10 which pre-dates the change to the presentday livery in 1984 when the name was shortened to Korean AirToday, it is the world’s second largest cargocarrier and has its sights set on becomingnumber one.Today, KAL has more than 15,000employees. It carries nearly 25 million passengersand more than 1.5 million tons ofcargo a year.A fleet of 117 aircraft operate around400 daily passenger flights to 90 cities in33 countries.The passenger fleet has an average ageof less than seven years and consists of 24Boeing B747-400s, one B747-300, fourB777-300s, nine B777-200s, 14 B737-800s,15 B737-900s, 16 Airbus A330-300s, threeA330-200s and 10 A300-600s. There are 21full freighters in the fleet: 15 B747-400Fs,one B747-300F, two B747-200Fs and threeMcDonnell Douglas MD-11Fs.In 1976, KAL launchedits own aerospace divisionand almost singlehandedlystarted Korea’saircraft manufacturingindustry. As a pioneerin this field, the divisionhas successfully producedmilitary and civil helicopters,as well as military jetfighters. It also suppliesparts to aircraft manufacturersAirbus and Boeing.In 2004, KAL earnedan operating profit of US$384 million onsales of $7.2 billion.This year it is aiming for an operatingprofit of $600 million on sales of $7.8 billion,with a net profit of more than $400million.It is a far cry from the shaky days of thelate 1960s.ORDERSAir France: 10;China Southern Airlines: 5;Emirates Airline: 41, plus 2 A380F;Ethiad Airlines: 4;FedEx: 10 A380F;ILFC: 5 plus 5 A380F;Korean Air: 5;Lufthansa German Airlines: 15;Malaysia Airlines: 6;Qatar Airways: 2;Qantas Airways: 12;Singapore Airlines: 10;Thai Airways International: 6;UPS: 10;Virgin Atlantic Airways: 6June 2005A380 COUNTDOWNFollowed by- Static display and possible first public demonstration flight atParis Air Show- Flight test programme continues- First flight to Hamburg- The start of cabin furnishing- Early long-range test flightsFourth quarter, 2005 - Route proving flights begin- First flight (Engine Alliance engines)First half, 2006Second half, 2006- Flight test programme ends- First Singapore Airlines aircraft goes into paint shop- Type certification- Start of delivery phase for first SIA aircraft- Delivery to SIA- Entry into serviceJUNE – AUGUST 2005 ORIENT AVIATION / A380 Quarterly Update 11