Korean Air Senior Executive Vice President Cho Won-tae, appointed as CEO of the airline

Korean Air (KAL) marked the 47th anniversary of its founding at the Korean Air headquarters in Gonghang-dong, Gangseo-gu, Seoul, on March 2 with Hanjin Group Chairman Cho Yang-ho and executives and staff members in attendance. Hanjin Group acquired the state-run Korean National Airlines at the request of then President Park Chung Hee on March 1, 1969. 

The state-run Korean National Airlines, which was struggling of huge losses, has now changed into a world-class national-flag carrier with a target of posting 12 trillion won in sales this year. Korean Air now ranks third in terms of freight transportation following Emirates Airlines and Cathay Pacific. Chairman Cho has unveiled a vision of rising to a super-global airline in 2019 when the company marks the 50th anniversary. 

Korean Air has been grappling with the implications of such factors as the rising of low-cost carriers and declining airfares in recent years. But Chairman Cho, stressing aggressive management and in-house innovation to overcome the crisis, has called for bracing for changes based on future projections and determination. Korean Air aims to b a global top 10 airliner by 2019. 

The Korean national flag carrier signed a contract to import 100 aircraft last June to enhance the competitiveness of such long-haul routes as flights to North Americas and Europe. The new aircraft 50 B737MAX-8s and 50 next-generation A321NEOs will be imported during the period between 2019 and 2025 on a gradual basis. The new aircraft could cut down on up to 8 percent in aviation costs per seat thanks to fuel efficiency. 

Korean Air has completed a project import 10 A380s, dubbed “Hotel in the Sky” last year. The airliner plans to import 10 supersize B747-8is by next year. Korean Air is expected to have more than 180 aircraft in operation by 2019 if things go as planned. 

The airline plans to expand new flight routes. Korean Air has obtained a go-ahead from the government to fly between Incheon and Tehran for the first time in 40 years after flights were halted. Koran Air has been allowed to operate a regular flight to Iran four times weekly.

Korean Air, who launched a new flight route between Busan and Taipei, plans to put newly imported aircraft on flights to San Francisco, New York, London, and other North American and European cities to ramp up the competition of the long-haul routes.

Korean Air plans to expand the number of cities in which the airline flies to 140 around the world by 2019. 

The Wilshire Grand Hotel, to be opened in Log Angeles in 2017 by Korean Air, will emerge as a new landmark of the U.S. city.

The B747-8i, operated by Korean Air. The airliner plans to purchase 50 B737MAX-8s and 50 next-generation A321NEOs to ramp up the competitive of long-haul routes between 2019 and 2025. (Photos: Korean Air)

Cho Won-tae Now Appointed to be CEO

Korea Air appointed Senior Executive Vice President Cho Won-tae, to the chief executive officer of the airline. Korean Air’s regular shareholders’ meeting, convened on March 18, approved the appointment of Senior Executive Vice President Cho to be CEO of the airline. Executive Vice President Cho’s rising to CEO brings to four the number of the airline’s CEOs, including Chairman Cho Yang-ho, Korean Air President Ji Chang-hoon and Korean Air Senior Executive Vice President Lee Sang-gyun in charge of financing. 

Senior Executive Vice President Cho was also appointed to be CEO of Korea Airport Service, a subsidiary of Korean Air.

Korean Air promoted Senior Executive Vice President Cho, who was in charge of passenger and freight, to senior executive vice president in charge of overseeing all business areas, including passenger, freight, maintenance and operations in the 2016 regular reshuffle conducted on Jan. 11.

Senior Executive Vice President Cho’s appointment as CEO may be construed as a step to solidify his position as a third-generation heir-apparent, succeeding Chairman Cho.