Take this with a massive grain of salt.
Korean Air president Woo Kee-hong warns that the continuous effects of the coronavirus threatens Korean Air’s survival.
Korean Air’s president stated 80% of the airline’s international capacity had been cut due to travel restrictions, compared to a 18% cut made during the 1997-1998 Asian financial crisis.
Woo Kee-hong’ statement:
“We can easily imagine the severity of the crisis we are facing in comparison. And what is more daunting is that the situation can get worse at any time and we cannot even predict how long it will last.”
“But if the situation continues for a longer period, we may reach the threshold where we cannot guarantee the company’s survival.”
So far, Korean Air has grounded around 100 out of 145 aircraft, cut down on investments and operational expenses, asked employees to take voluntary leave, and more.
Image by Korean Air.
Imagine what South Korea’s Asiana Airlines is going through with their past financial problems…
If Korean Air collapses (not saying it will), that would be devastating for South Korea.
In 2018, Korean Air had a 33% market share for domestic flights and a 30% market share for international flights in/to/from South Korea.
This could be the largest airline collapse of the past decade…