Four Years of Relentless Determination... Leadership of Cho Won-tae Driving the Merger [Birth of Mega Carrier]

Active Pursuit of Asiana Airlines Acquisition
Korean Air Considers It a Key Condition for 'Step Up'

The successful merger of Korean Air and Asiana Airlines, which took four years to pursue, has brought attention to the leadership of Cho Won-tae, chairman of Korean Air. He is being praised for showing the ‘determination’ that had been hidden until now. The market is watching how Chairman Cho will address the remaining challenges, such as the cultural and physical integration of employees from both companies and the unification of customer mileage programs.

According to Korean Air on the 28th, Chairman Cho viewed this merger as a major gamble and is said to have led the entire process. He believed it was an essential condition not only to win the management rights dispute but also for Korean Air to take a step forward in the future. Since deciding to acquire Asiana Airlines in November 2020, he has pledged and emphasized the merger every year in his New Year’s addresses starting in 2021. In a meeting with a foreign media outlet last June, he expressed strong determination about the acquisition of Asiana Airlines, saying, "We put 100% on the line. No matter what we give up, we will make the merger happen."

Chairman Cho has been leading the ‘modernization’ of Korean Air. After succeeding the late Cho Yang-ho and ushering in the ‘third-generation era,’ his intentions were largely reflected in the major fleet renewal. Instead of having an excessively diverse fleet, the company decided to reorganize around models such as the Boeing 787 series and Airbus 350 series, which cover medium- to long-haul routes. It was also Chairman Cho’s decision to introduce Amazon Web Services (AWS) cloud to Korean Air and actively adopt the latest technologies.

Chairman Cho also played a significant role in establishing a joint venture (JV) with Delta Air Lines, one of the three major U.S. airlines. It is said that he analyzed the necessity of the joint venture with employees and led several discussions with Delta’s top management. A JV is a stronger cooperative relationship between airlines than a ‘codeshare,’ which means joint operation of flights. The two airlines operate sales together and share profits jointly.

A former Korean Air executive who worked with Chairman Cho recalled, "There are many aspects different from the image known to the public," adding, "If employees clearly explained their opinions, he accepted them without hesitation and put them into action."

Regarding the merger, Chairman Cho’s remaining task is the upcoming integration work. He is expected to actively listen to employees’ voices and push forward with a sense of urgency. If the integration process drags on too long, the synergy effect is likely to diminish significantly.