Korean Air is currently making progress on the groundwork for integration after acquiring Asiana Airlines. Although Korean Air plans to maintain independent management for two years, there are numerous challenges that need to be addressed beforehand. Korean Air has completed the removal of the wing logo, which symbolized Kumho Asiana Group; however, it must also finalize the spending of nearly 1 trillion won in mileage, the transfer of the passenger terminal at Incheon International Airport, and the transfer of the institutional sector of the cargo business.
According to the aviation industry on the 26th, Asiana Airlines is working on the groundwork for the launch of Integrated Korean Air in the task force established with Korean Air. They are reviewing all matters, including the integration of human resources, such as manuals, work systems, and organizational culture, as well as future utilization plans for assets like buildings and equipment. Once the task force selects integration tasks, each organization will promote them.
Asiana Airlines plans to form a terminal transfer consultative body with Incheon International Airport Corporation, Korean Air, and related immigration companies. This is to transfer the first passenger terminal (T1) used by Asiana Airlines to the second passenger terminal (T2) used by Korean Air. The consultative body is also expected to discuss the terminal transfer of low-cost carriers apart from Asiana Airlines.
The exhaustion of mileage is also identified as a challenge. Korean Air plans to submit a mileage integration plan for both companies to the Fair Trade Commission by June. Before that, it is necessary to reduce the mileage accumulated by Asiana Airlines, which is close to 1 trillion won. Asiana Airlines announced on the 20th that it would operate a mileage-exclusive aircraft on North American routes by deploying an A380.
The most pressing challenge is the transfer of the cargo sector, which has been sold to Air Incheon. The sale of the cargo sector was a condition set by the European Commission when approving the merger of Korean Air and Asiana Airlines. In January, a contract was concluded to sell the cargo sector for 470 billion won to Air Incheon, and the formal procedure has been completed after it was approved at an extraordinary shareholders' meeting.
However, there is conflict as the Asiana Airlines pilots' labor union and others are pushing for an injunction against the unlawful transfer. The pilots' union also demanded that the transfer of cargo pilots be compensated with a maximum total of 200 billion won under the pretext of severance pay and consolation money.
Asiana Airlines is conducting daily explanations and compensation preparations for employees transferring to Air Incheon. Approximately 800 personnel are expected to move to Air Incheon by June due to the sale of the cargo business.
The integration of the corporate logo (CI) that can visually represent the combination of the two companies and the application of new aircraft designs have not yet been finalized. Korean Air announced on the 11th that it would sequentially apply the new logo and paint scheme after unveiling a new CI.
The application of the new paint scheme is expected to take quite a while. It is anticipated to take several years to paint the 163 aircraft owned by Korean Air, and the aircraft paint will include the logo of the affiliated airline alliance, which differ between Korean Air and Asiana Airlines.
An industry source remarked, "In the case of Asiana Airlines, the institutional sector of the cargo business sold to Air Incheon must be prioritized for other challenges to be addressed efficiently."