South Korean carriers announce aircraft sales, job and schedule reductions

Airline Industry Information, Oct 10, 2001

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

Korean Air Lines indicated on Tuesday (9 October) that it intends to sell more than ten aircraft and cut services due to falling demand.

The carrier will reduce weekly flights to North America from 61 to 48 by mid-December and suspend eight other unprofitable routes. The cutbacks will leave more than ten aircraft grounded, so these will be sold, Reuters reported.

Asiana Airlines, another South Korean airline, has indicated meanwhile that it will be reducing its 7,000 staff by about 5% and has already reduced flights to Los Angeles, USA from 14 to 11 per week.

Analysts have stated that the airlines' actions indicate that they are seeking government aid, and expect that this may be forthcoming given the severity of the situation at the moment and the importance of the airline industry.

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