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Korean Air to shut cargo terminals in major cost-cutting drive

KOREAN AIR will suspend the operation of cargo terminals at three domestic airports and related services in October to improve its financial structure of the flag carrier battered by scandals involving the ruling family, reports Seoul's Aju Business Daily

Korean Air to shut cargo terminals in major cost-cutting drive

KOREAN AIR will suspend the operation of cargo terminals at three domestic airports and related services in October to improve its financial structure of the flag carrier battered by scandals involving the ruling family, reports Seoul's Aju Business Daily

08 July 2019 - 19:00

KOREAN AIR will suspend the operation of cargo terminals at three domestic airports and related services in October to improve its financial structure of the flag carrier battered by scandals involving the ruling family, reports Seoul's Aju Business Daily.

The airline, under the leadership of its new chairman, Cho Won-tae, said it would stop transportation and other related services at cargo terminals in three cities - Gwangju, Cheongju and Daegu - on October 1 as its cargo business has been in decline.



'The biggest reason for Korean Air's operating loss was slow cargo sales, which were down 13.6 per cent from a year ago,' said Bang Min-jin, a researcher at Eugene Investment & Securities.



Starting this month, Korean Air will remove first class seats on 27 mid and short-distance routes, equivalent to 70 per cent of international routes.



On June 19, Mr Cho signed a deal to purchase 30 new 787 Dreamliners, with a commitment to purchase 10 new 787-10s and 10 additional 787-9s. The airline will also lease 10 787-10s from Air Lease Corporation (ALC). The total amount of money involved was estimated at 11.5 trillion won (US$9.7 billion).


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