Korean Air is expanding its private jet business targeting ultra-premium customers (VVIPs), heads of major conglomerates, and top stars. The private jet business, which flies aircraft tailored to client demands, has gained momentum as it has posted annual profits since last year. Among national flag carriers, Korean Air is the only one running a private jet business.
According to the aviation industry on the 3rd, Korean Air is surveying its in-house pilots to see if they are willing to transfer to its subsidiary K-Aviation. K-Aviation, a 100% subsidiary of Korean Air, operates the private jet business. It currently owns four rotary-wing aircraft (helicopters).
Korean Air plans to transfer fixed-wing aircraft (private jets) to K-Aviation and grow it into a specialist business jet company. Currently, private jets are operated by Korean Air's charter division, while helicopters are operated by K-Aviation. It appears the company intends to recruit Korean Air pilots as it consolidates the private jet business under K-Aviation.
Korean Air owns four private jets: one Boeing-made 16-seat model and one 25-seat model, one Gulfstream G650ER (13 seats), and one Bombardier Global Express XRS (13 seats). Private jets come equipped with sofas, bedrooms, kitchens, and even showers, earning the nickname "a flying office."
Korean Air's private jets can be used by purchasing flight hours after joining a membership. The annual membership fee is up to 700 million won, with up to 30 hours available for purchase. The hourly rate is 6.8 million won for international flights and 3.8 million won for domestic flights. Once all 30 hours are used, customers must pay the annual fee and rejoin the membership.
Introducing private jets is expected to accelerate K-Aviation's performance growth. K-Aviation's revenue last year was 11.986 billion won, up 245% from the previous year. Operating profit turned to a surplus at 2.507 billion won. Performance improved as major conglomerates such as Samsung signed long-term contracts.
In the aviation industry, many believe veteran pilots nearing retirement are likely to move to K-Aviation. A Korean Air official said, "There is nothing we can confirm regarding the private jet business unit."