Andrzej Jeziorski/SINGAPORE
South Korea's number two carrier, Asiana Airlines, has staged a spectacular turnaround in its 1999 financial performance, after a disastrous 1998 during which some observers doubted the airline's ability to survive.
The carrier reports a 109.68 billion won ($9.7 million) net profit for the year, compared with a 141.46 billion won net loss for the previous 12 months. Revenues totalled 1.78 trillion won, compared with 1.53 trillion.
Asiana's 1998 results led analysts to judge that it was on the brink of collapse as it suffered the full impact of the economic downturn which took effect in late 1997.
The carrier says that the improved results were due to a national economic recovery, with foreign exchange gains and increased tourist traffic contributing factors. The public also lost confidence in flag carrier Korean Air after a spate of accidents, which helped Asiana.
Asiana was listed on South Korea's secondary Kosdaq stock exchange late last year, raising over $300 million through an initial public offering, helping to cover debt payments. Internal figures, pre-flotation, suggest that it lost that amount in 1997, forcing it to cancel aircraft orders and route expansion plans.
The carrier operates 50 aircraft, in a mix of Boeing 747s, 767s and 737s, plus three Airbus A321-100s. Two more 737-400s and two A321s are due this year. Asiana plans to take additional widebodies next year and the airline is negotiating a deal with Boeing.
The carrier is to begin operating two new services to mainland China - to Guilin and Xian - from April. European services remain suspended.
Source: Flight International
