Asiana Airlines has moved a step closer to parity with its bigger rival, Korean Airlines, after receiving its first routes to Europe and Australia, two key parts of the globe that were previously off limits to South Korea's second carrier.
Asiana plans to launch service to Brussels via Vienna and to Cairns before the end of 1995. Neither route will produce instant profits, but both represent a major breakthrough for the seven-year-old carrier. The route awards are the first since Seoul adopted its more liberal designation policy last year. Brussels is a new destination but KAL previously held the Vienna authority until it dropped the service and the transport ministry agreed with Asiana that KAL had forfeited its route right.
As part of the same round of route awards Asiana was given Tashkent and KAL received routes to Tel Aviv, Fiji and Mexico City as an extension of its Los Angeles service. KAL still maintains a big lead over its rival, with services to 31 countries compared to Asiana's 13.
Asiana made a net profit last year of $37 million, its first since it started operations in 1988. Before that the airline had accumulated losses of $312 million. Asiana predicts a 1995 profit slightly higher than last year's, but future profits will be depressed by the carrier's aggressive fleet expansion plans.
Backed by the Kumho transport and petrochemicals group, Asiana's philosophy has continued its drive to become an established international carrier as quickly as possible, despite the losses. With 36 aircraft already in its fleet, Asiana is considering another large aircraft order for deliveries starting in 1998.
Source: Airline Business
