Chairman Cho Won-tae: "The Two Companies Are Already One... Changes Will Come Faster Than Expected"

Korean Air and Asiana Airlines Employees Address Posted
Rapid Integration... "Aiming to Be a World-Class Airline"

Cho Won-tae, CEO and Chairman of Korean Air who completed the acquisition of Asiana Airlines, urged employees to take responsibility, saying, "The future of the Korean aviation industry depends on the integrated Korean Air." He also emphasized, "With the merger, we have become a truly global network carrier."

In a statement released on the 16th, the first since the acquisition of Asiana, Cho said, "Korean Air and Asiana Airlines have now become one true family under the roof of the Hanjin Group," adding, "Although there will be a process of overcoming challenges to align with each other after living different lives, ultimately, we are a family and partners looking toward the same direction and walking together."

This is interpreted as setting a goal to reduce uncertainty by making quick decisions despite various trial and error and to advance as a world-class airline. The statement was posted on the intranets of both companies targeting employees of Korean Air, Asiana, and their subsidiaries. Right after finalizing the merger on the 13th, Cho visited Asiana’s maintenance, flight operations, cabin, and passenger service departments at Incheon Airport Terminal 1 to encourage the staff.

He urged that, as the only large full-service carrier (FSC) in Korea, all operations must be aligned with global standards moving forward. Emphasizing Korean Air’s role as a global network carrier connecting the world, Cho said, "It is time to review whether all operational procedures meet global standards." He stressed the importance of safety to the extent of saying, "There is no reason for integration if safety is not guaranteed."

He also announced that the integration of the two companies would proceed swiftly. Korean Air plans to operate Asiana independently for about two years before launching as a single airline. To this end, they are creating a new corporate identity (CI) and working on integrating organizational cultures and operational procedures of both companies. It is also essential to withdraw from the airline alliance ‘Star Alliance,’ to which Asiana belongs. Since 2000, Korean Air has been active in ‘SkyTeam,’ which it co-founded with Delta Air Lines. Cho said, "Although we will temporarily remain separate companies, the two are already as one," and urged, "The pace of change will be faster than expected, so let us focus on reducing uncertainty through swift decision-making and judgment."

Cho envisions the integrated airline becoming a world-class carrier. It must rise beyond being the only domestic FSC to a global level. The integrated Korean Air is estimated to rank around 9th or 10th worldwide. As of the third quarter this year, Korean Air and Asiana Airlines operate flights to 114 cities in 40 countries. The goal is to expand the route network further and improve service quality to become a ‘global network carrier.’ Korean Air’s recent acquisition of traffic rights to Dublin, Ireland, and Copenhagen, Denmark, aligns with this strategy.

Cho said, "I dream of the integrated airline being recognized and loved not only in Korea but worldwide," emphasizing, "We need the courage to humbly accept others’ strengths and sometimes harsh criticism, but I will take responsibility seriously, lead by example, and help employees demonstrate their best capabilities."