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THE TREASURE CHEST IN THE BACKYARD : WITH CHINA AND JAPAN AS NEIGHBORS, ASIANA AIRLINES DOESN'T HAVE TO LOOK FOR GOLD IN LONG-HAUL MARKETS

2003; De Gruyter; Volume: 40; Issue: 8 Linguagem: Inglês

0002-2543

Perry Flint,

Asian Industrial and Economic Development

Korea's Asiana Airlines, taking advantage of Seoul's geographical position approximately halfway between Tokyo and Beijing, is concentrating its efforts on trans-Asian flights rather than on monopolizing the European and American markets. While the airline's long-haul services are breakeven and its domestic network a money pit, its services to China and Japan have generated handsome profits. Routes to China and Japan accounted for around 46 percent of Asiana's revenues in 2002, and almost all of its profits. Asiana is now heralding quality over quantity, reducing its debt and keeping its new aircraft acquisition at a minimum. The airline also plans to cut distribution costs by driving more traffic to the Internet--a reasonable shift, given that South Korea, with more than 50 percent of households searching cyberspace and near-universal access to broadband, may be the Web-happiest country in the world. Once an aggressively expansive airline, Asiana changed its strategy after the Asiana's Asian economic meltdown of 1997-1998, and this new philosophy of cautiousness is paying off.