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JUNE 2016

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Korean Air to exit Brazil and Air Seoul awaits permission to fly

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June 17th 2016

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South Korea’s Korean Air (KAL) will revise its Americas’ network by terminating all passenger flights to Sao Paulo from September 25 because of huge losses. KAL flies an Incheon-Los Angeles-Sao Paulo A330-200 service three times a week. Read More » The airline has fifth freedom rights on the U.S.-Brazil sectors, but South Korean media suggested the route still generates annual losses of 25 billion won ($21.5 million).

The carrier also will reduce frequency on its Incheon-Jakarta route from ten-weekly to daily in September. In more positive news, KAL will launch Incheon-Delhi from December and is considering when to start flights to Tehran after securing four times a week traffic rights in March.

Meanwhile, Korean Air’s low-cost subsidiary, Jin Air, last week said it had signed Memorandums of Understanding with Cambodia Angkor Air and Lao Airlines, respectively, offering its expertise and assistance in route development, ground handling and in-flight services. At the same time, Jin Air confirmed interline agreements with both of the Indochinese carriers.

In other South Korean aviation news, The Korea Times, citing government sources said Air Seoul could be granted its Air Operator’s Certificate as early as mid next month.  Asiana Airlines’ second budget offshoot plans to take over several loss-making domestic and regional routes from its parent, including services to Japanese and Chinese second and third tier cities, using three A321s on lease from Asiana.

Air Busan, Asiana’s first LCC, is set to fly the first nonstop link between Busan and Chengdu. From June 25, the carrier will fly the route every five days with A320 aircraft.

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