Korean Air expects World Cup boost


Korean Air expects a revenue boost from this year's World Cup soccer matches in Korea and Japan

SEOUL, South Korea -- Korean Air Lines expects this year's World Cup soccer finals to help boost revenue by 270 billion won ($207 million), the carrier's executive chairman Cho Yang-ho said Friday.

South Korea is co-hosting the World Cup finals with Japan from May 31 to June 30.

Aviation analyst the Center for Asia Pacific Aviation said in its 2002 regional outlook last week that Korean Air was aiming for a "substantial profit" this year, based in part on a proposed 45 percent reduction in costs.

But it warned that heavy discounting by other airlines would have an impact on fares and freight rates both for Korean Air and second-ranked carrier Asiana.

"Despite the World Cup boost in mid-2002, expansion plans may be delayed during the year and growth restrained," the center noted.

In an interview with Reuters news agency, Cho said Friday the Korean carrier's renewed code-sharing pacts with Air France from April 1 and Delta Air from May 1 would add 60 billion won ($46 million) to revenue in 2002.

Signing ceremony

Executives from the three airlines signed code-share agreements in a ceremony held in Korean Air's headquarters in Seoul on Friday.

The agreements were severed for about three years after Korean Air was involved in a series of crashes.

Industry analysts said code-sharing would help Korean Air expand its customer bases in Europe and North and Latin America.

The U.S. Federal Aviation Administration downgraded South Korea's safety standards rating to Category Two in August but restored it to Category One in December.

Korean Air shares traded 50 won or 0.4 percent higher at 12,550 won late Friday, while the benchmark Kospi index was down 1.35 percent.