Korean Air, Owner of Asiana, to Introduce 2 A350s... Accelerating Fleet Maintenance

First Introduction of Two A350s Test Flights Conducted
Full Deployment After Painting... Additional Orders for A321neo
Fleet Maintenance Accelerates After Merger Uncertainty Resolved

Korean Air, which successfully merged with Asiana Airlines, is steadily introducing new aircraft. It appears to be accelerating fleet maintenance by removing uncertainties.

According to industry sources on the 10th, Korean Air conducted the first test flights of two Airbus A350-900 aircraft earlier this month. The A350-900 is a model newly introduced by Korean Air, featuring capabilities for medium- to long-haul flights similar to the Boeing B787-10. It also boasts excellent fuel efficiency relative to its transport capacity. Korean Air plans to conduct additional test flights for the two aircraft and then deliver them to the Korean Air Tech Center at Gimhae Airport around mid-month for painting. A Korean Air official stated, "The exact deployment schedule and routes have not yet been decided."

This model has only been operated domestically by Asiana Airlines. The two aircraft being introduced were originally ordered by Asiana. However, when Asiana faced difficulties in making intermediate payments, Airbus proposed that Korean Air take over the order, which was accepted. Once the two companies become one, with Asiana operating 15 of these aircraft, Korean Air is expected to utilize them alongside its existing B787-10s as next-generation main aircraft.

Korean Air also placed an additional order for six next-generation small aircraft, the A321neo, earlier this month. Previously, on October 30 last year, Korean Air signed a purchase contract with Airbus for 20 of this model and set an option to buy more under the same conditions. By exercising this option now, Korean Air was able to purchase at the exchange rate of around 1,350 KRW per USD at the time of the contract last October. This means they bought the aircraft more than 10% cheaper compared to the recent exchange rate, reducing risk.

Korean Air appears to be speeding up fleet maintenance as it finalizes the merger with Asiana Airlines. In particular, it is actively introducing Airbus aircraft to balance its Boeing fleet. As of the end of October, Korean Air owns 158 aircraft in total, including 52 Airbus and 106 Boeing planes. An industry insider explained, "Introducing new models with better fuel efficiency helps with long-term cost management," adding, "Now that the uncertainty of the merger has been resolved, they are making full-scale moves." Korean Air plans to participate in Asiana Airlines' third-party allotment rights offering on the 11th, acquire new shares, and incorporate Asiana as a subsidiary starting from the 12th.