South Korea’s next government should prioritize making a trade deal with Washington that shields the aviation industry from tariffs, the head of the country’s largest airline said.
Korean Air Lines Co. Chairman and Chief Executive Officer Cho Won-Tae, speaking before voters head to the polls on Tuesday to choose a new government, said he expects the outcome to lead to stability and predictable governance, no matter who wins.
A lack of political leadership over the past several months has “been troubling, especially with the economic situation globally,” said Cho, 49, who also heads Hanjin Group, one of the country’s largest family conglomerates. Regardless of the vote’s outcome, a trade deal for the export-focused nation would help achieve “some future and predictability and plan what to do next.”
The national vote comes after a turbulent period for Seoul following a failed marshal law declaration by the then-president Yoon Suk-Yeol, and the subsequent impeachment of various interim leaders.
Korean Air is anxious for the aviation industry to be shielded from the threat of US tariffs. Not only is it a large buyer of Boeing Co. and Airbus SE aircraft, but it also makes parts for the US planemaker and its European rival, putting it in the crosshairs of any levies.
“This is very important to Korean Air as well. Historically aviation wasn’t part of the tariffs. Now its going to cause a lot of confusion to business,” said Cho, speaking at the International Air Transport Association annual meeting.
The airline group’s aerostructures business makes parts including the wing tips for 737 Max and Airbus A320neo, and the 777 and 787 raked wing tips. It also produces part of the fuselage for the A330.
Korean Air said it has seen sharp decreases in cargo demand from China to the US. Air freight is a key revenue line for the company as one of the world’s largest cargo operators. Passenger demand has meanwhile been steady, including in the closely watched premium business and first class cabin.
The Korean Air and Hanjin Group chief also said the airline would be the first to restart overflights to Russia should there be a resolution with Ukraine and a change in US-led sanctions.
Cho said the airline has placed a order of less than 10 aircraft as an undisclosed customer for freighter planes, though he declined to name the manufacturer. The purchase will cap off a buying spree involving more than 100 Airbus and Boeing jets in recent years.
This article was generated from an automated news agency feed without modifications to text.
