 Alex Macheras |
In fact, South Korea has halted virus transmission better than any other wealthy country during the pandemic’s early months. It was about twice as effective as the US and UK at preventing infected individuals from spreading the disease to others, according to a recent report from a UN-affiliated research network. South Korea’s economy is expected to decline by just 0.8% this year, the best among the Organisation for Economic Co-operation and Development’s forecasts for member nations.
The South Korean aviation sector, which had witnessed a sharp decline in the first quarter (Q1) due to Covid-19 pandemic, is showing signs of recovery with the country’s two major carriers Korean Air and Asiana Airlines reporting positive results in the second quarter (Q2) of 2020 — unlike almost every other airline on earth. While a full recovery will undoubtedly take time considering the impact of the spread of the pandemic, according to Global Data.
Korean Air and Asiana Airlines had a market share of 19.24% and 13.64%, respectively, in Q2 2019. The companies reported operating losses in Q1 2020. However, the two airlines have turned it around in Q2 2020. Korean Air reported a year-on-year operating profit of KRW148.5bn in Q2 on account of surge in cargo sales. On annual basis, the pandemic affected the company’s revenue by 44%. However, a reduction of 50.1% in operating expenses enabled it to generate profit.
Asiana Airlines reported operating profit of KRW23.4bn. On annual basis, revenue decreased by 49.2% but operating expenses fell by 52.8%, leading to operating profit.
The key to South Korea’s success came from blending technology and testing like no other country, centralized control and communication – and a constant fear of failure.
“No country has adapted to living with, and containing, the virus like South Korea,” said Dale Fisher, chairman of the World Health Organisation’s global outbreak alert and response network. “You don’t need or want to eradicate the virus. But you modify your behaviour and get on with life.”
South Korea has demonstrated that with effective testing, tracing & isolating – the economy does not have to suffer.
Elsewhere, airlines are looking for different ground-based revenue sources in a bid to boost cash. Singapore Airlines will use two of its grounded A380s to become “restaurants” and reservations sold out just 30 minutes after it opened.
Due to the demand when it opened reservations on October 12, SIA has reopened the wait-list and added two more days allowing for more customers for lunch and dinner. "We are grateful for the extremely strong support from our customers, and we look forward to welcoming them to Restaurant A380 Changi," said Lee Lik Hsin, SIA executive vice president, commercial said in a news release. The airline will use two of their jumbo jets for the experience. Customers have their choice of cabin class and special menus will correspond with each level. First-class seating includes a five-course meal including a cheese and fruit course. Only half the seats on the plane will be available to ensure proper social distance.
Qantas did the same last month, launching a “flight to nowhere” which became one of the fastest-selling in the airline’s history, with all tickets snapped up in 10 minutes.
The Australian flag carrier decided to launch a seven-hour scenic route around the country, which will both take off from and land in Sydney, amid ongoing travel restrictions.
The flight won’t stop anywhere, but gives passengers the change to enjoy views over Uluru, the Great Barrier Reef and other landmarks.
A spokesperson for Korean Air said the airline is considering similar. Korean Air said: “Currently, Korean Air is considering ‘flights to nowhere’ operations and reviewing possible services for our passengers, including inflight meals and inflight duty free sales. However, we will be able to provide more details after further discussion and development.”
In late August, Japanese carrier All Nippon Airways flew a 90-minute scenic flight on one its “Flying Honu” Airbus A380 aircraft. Passengers were treated to a Hawaiian resort-style experience in the airport and onboard the plane, which normally flies between Tokyo and Honolulu.
Taiwanese air carrier Eva Air launched a sightseeing flight last month on one of its Hello Kitty jets. Departing from and landing at Taipei’s Taoyuan International Airport, the 2-hour 45-minute flight travelled at an altitude of 20,000 to 25,000 feet to give passengers a closer view of Taiwan and Japan’s Ryukyu Islands.
Royal Brunei Airlines launched a no-destination flight last month. The national flag carrier for Brunei, a Southeast Asian country on the island of Borneo, flew an 85-minute “Dine & Fly” sightseeing tour along the coastline of Brunei and Malaysian Borneo. The flight, which included brunch and pilot commentary, sold out within 48 hours, and hundreds have registered interest for future flights.
The South Korean aviation sector, which had witnessed a sharp decline in the first quarter (Q1) due to Covid-19 pandemic, is showing signs of recovery with the country’s two major carriers Korean Air and Asiana Airlines reporting positive results in the second quarter (Q2) of 2020 — unlike almost every other airline on earth. While a full recovery will undoubtedly take time considering the impact of the spread of the pandemic, according to Global Data.
Korean Air and Asiana Airlines had a market share of 19.24% and 13.64%, respectively, in Q2 2019. The companies reported operating losses in Q1 2020. However, the two airlines have turned it around in Q2 2020. Korean Air reported a year-on-year operating profit of KRW148.5bn in Q2 on account of surge in cargo sales. On annual basis, the pandemic affected the company’s revenue by 44%. However, a reduction of 50.1% in operating expenses enabled it to generate profit.
Asiana Airlines reported operating profit of KRW23.4bn. On annual basis, revenue decreased by 49.2% but operating expenses fell by 52.8%, leading to operating profit.
The key to South Korea’s success came from blending technology and testing like no other country, centralized control and communication – and a constant fear of failure.
“No country has adapted to living with, and containing, the virus like South Korea,” said Dale Fisher, chairman of the World Health Organisation’s global outbreak alert and response network. “You don’t need or want to eradicate the virus. But you modify your behaviour and get on with life.”
South Korea has demonstrated that with effective testing, tracing & isolating – the economy does not have to suffer.
Elsewhere, airlines are looking for different ground-based revenue sources in a bid to boost cash. Singapore Airlines will use two of its grounded A380s to become “restaurants” and reservations sold out just 30 minutes after it opened.
Due to the demand when it opened reservations on October 12, SIA has reopened the wait-list and added two more days allowing for more customers for lunch and dinner. "We are grateful for the extremely strong support from our customers, and we look forward to welcoming them to Restaurant A380 Changi," said Lee Lik Hsin, SIA executive vice president, commercial said in a news release. The airline will use two of their jumbo jets for the experience. Customers have their choice of cabin class and special menus will correspond with each level. First-class seating includes a five-course meal including a cheese and fruit course. Only half the seats on the plane will be available to ensure proper social distance.
Qantas did the same last month, launching a “flight to nowhere” which became one of the fastest-selling in the airline’s history, with all tickets snapped up in 10 minutes.
The Australian flag carrier decided to launch a seven-hour scenic route around the country, which will both take off from and land in Sydney, amid ongoing travel restrictions.
The flight won’t stop anywhere, but gives passengers the change to enjoy views over Uluru, the Great Barrier Reef and other landmarks.
A spokesperson for Korean Air said the airline is considering similar. Korean Air said: “Currently, Korean Air is considering ‘flights to nowhere’ operations and reviewing possible services for our passengers, including inflight meals and inflight duty free sales. However, we will be able to provide more details after further discussion and development.”
In late August, Japanese carrier All Nippon Airways flew a 90-minute scenic flight on one its “Flying Honu” Airbus A380 aircraft. Passengers were treated to a Hawaiian resort-style experience in the airport and onboard the plane, which normally flies between Tokyo and Honolulu.
Taiwanese air carrier Eva Air launched a sightseeing flight last month on one of its Hello Kitty jets. Departing from and landing at Taipei’s Taoyuan International Airport, the 2-hour 45-minute flight travelled at an altitude of 20,000 to 25,000 feet to give passengers a closer view of Taiwan and Japan’s Ryukyu Islands.
Royal Brunei Airlines launched a no-destination flight last month. The national flag carrier for Brunei, a Southeast Asian country on the island of Borneo, flew an 85-minute “Dine & Fly” sightseeing tour along the coastline of Brunei and Malaysian Borneo. The flight, which included brunch and pilot commentary, sold out within 48 hours, and hundreds have registered interest for future flights.
The author is an aviation analyst. Twitter handle: @AlexInAir
